Fitch Downgrades 5 Classes of Saybrook CBO II, Ltd.

NEW YORK--(Business Wire)--
Fitch downgrades and removes from Rating Watch Negative five
classes of notes issued by Saybrook CBO II, Ltd. (Saybrook II). The
following rating actions are effective immediately:

--$202,189,368 Class A Notes downgraded to 'B' from 'BBB' and
removed from Rating Watch Negative;

--$2,000,000 Class B-1 Notes downgraded to 'CCC' from 'BB+' and
removed from Rating Watch Negative;

--$13,000,000 Class B-2 Notes downgraded to 'CCC' from 'BB+' and
removed from Rating Watch Negative;

--$12,000,000 Class C-1 Notes downgraded to 'CC' from 'B+' and
removed from Rating Watch Negative;

--$6,000,000 Class C-2 Notes downgraded to 'CC' from 'B+' and
removed from Rating Watch Negative;

--$12,000,000 Preference Shares to 'PIF' from 'B+' and removed
from Rating Watch Negative.

Fitch's rating actions reflect the collateral deterioration within
the portfolio and underlying exposure to subprime residential
mortgage-backed securities (RMBS).

Saybrook II is a structured finance (SF) collateralized debt
obligation (CDO) that closed on November 14, 2002 and is managed by
General Re - New England Asset Management Inc. Presently, 62.6% of the
portfolio consists of U.S. subprime RMBS, 25.4% were issued from 2005
to 2007. The portfolio is also comprised of 12.0% Alt-A RMBS, 11.7%
asset backed securities, 4.8% prime RMBS, 3.8% CDO, 2.9% CMBS, 1.1%
corporate securities, and 1.1% of manufactured housing.

Since the last review in November 2007, approximately 26.6% of the
portfolio has been downgraded with 9.9% of the portfolio currently on
Rating Watch Negative. Currently, 36.6% of the portfolio is rated
below investment grade, of which 20.6% of the portfolio is rated
'CCC+' or below.

Currently, the all OC ratios are passing their respective triggers
as of the August 1, 2008 trustee report. The downgrades to the rated
notes are a result of the credit deterioration experienced to date and
reflect Fitch's view on the long-term prospects for ultimate receipt
of principal for each of the notes.

Fitch is reviewing its SF CDO approach and will comment separately
on any changes and potential rating impact at a later date. Fitch will
continue to monitor and review this transaction for future rating
adjustments. Additional transaction information and historical data
are available on the Fitch Ratings web site at www.fitchratings.com.

The ratings of the class A notes address the likelihood that
investors will receive timely payment of interest and ultimate payment
of principal, as per the governing documents. The ratings of the class
B-1, B-2, C-1 and C-2 notes address the likelihood that investors will
receive ultimate payment of interest and ultimate payment of
principal, as per the governing documents. The original rating of the
preferred shares addressed the likelihood that investors would receive
their stated balance of principal by the legal final maturity date.
The preferred shares have received distributions in excess of the
$12,000,000 original rated balance and therefore are deemed to fully
satisfy the conditions of Fitch's ratings of the notes.

Fitch will continue to monitor and review this transaction for
future rating adjustments. Additional transaction information and
historical data are available on the Fitch Ratings web site at
www.fitchratings.com.

Fitch's rating definitions and the terms of use of such ratings
are available on the agency's public site, www.fitchratings.com.
Published ratings, criteria and methodologies are available from this
site, at all times. Fitch's code of conduct, confidentiality,
conflicts of interest, affiliate firewall, compliance and other
relevant policies and procedures are also available from the 'Code of
Conduct' section of this site.

Fitch Ratings
Brian Vorderbrueggen, +1-212-908-9102 (New York)
Kevin Kendra, +1-212-908-0760 (New York)
Media Relations:
Julian Dennison, +44 020 7682 7480 (London)
Sandro Scenga, +1-212-908-0278 (New York)

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