Fitch Downgrades RFC CDO I, Ltd.

NEW YORK--(Business Wire)--
Fitch Ratings has downgraded and assigned Stable Outlooks to five classes of
notes issued by RFC CDO I, Ltd. (RFC I) as follows:

--$67,047,108 class A notes to 'AA' from 'AAA'; Outlook Stable;

--$22,500,000 class B-1 notes to 'A' from 'AA+'; Outlook Stable;

--$2,000,000 class B-2 notes to 'A' from 'AA+'; Outlook Stable;

--$16,200,000 class C notes to 'BB' from 'A+'; Outlook Stable;

--$7,393,447 class D notes to 'BB-' from 'BBB+'; Outlook Stable.

The downgrades are a result of the portfolio's credit deterioration since
Fitch's last review in May 2006. Approximately 13.2% of the portfolio is rated
below investment grade, of which 8% is rated 'CCC' and lower. The Fitch weighted
average rating has decreased to the 'BB+/BB' category from the 'BBB/BBB-'
category.

The class A notes have paid down approximately 70.4% since closing. The class D
notes have benefited from the class D Priority Redemption feature in the
interest waterfall, which has resulted in a paydown of 42.7% since closing. This
feature ends after the July 2009 payment date, but a reverse pay-down feature
will begin redeeming the class D notes, to the extent there are proceeds
available, commencing in July 2012.

RFC I is a structured finance CDO, which closed on June 30, 2004. The portfolio
is monitored by Residential Funding Corporation. The rating actions incorporate
Fitch's recently adjusted default and recovery rate assumptions for analyzing
structured finance (SF) CDOs, in addition to negative credit migration in the
underlying portfolio. The static portfolio is composed of 58.2% Prime
residential mortgage-backed securities (RMBS), 29.4% Subprime RMBS, 5.9%
commercial mortgage-backed securities (CMBS), and 3.6% CDOs, and 2.9%
manufactured housing RMBS.

The ratings of the class A, B-1, and B-2 notes address the likelihood that
investors will receive full and timely payments of interest, as per the
governing documents, as well as the stated balance of principal by the legal
final maturity date. The ratings of the class C and D notes address the
likelihood that investors will receive ultimate and compensating interest
payments, as per the governing documents, as well as the stated balance of
principal by the legal final maturity date.

All of the above referenced notes were assigned a Stable Outlook reflecting
Fitch's expectation that the ratings will remain stable over the next one to two
years.

These rating actions resolve the 'Under Analysis' status issued on Oct. 14, 2008
following Fitch's announcement of its proposed criteria revision for analyzing
SF CDOs. The revised criteria report, 'Global Rating Criteria for Structured
Finance CDOs', was published in its final form on Dec. 16, 2008 along with an
updated version of the Fitch Portfolio Credit Model that includes additional
functionality for analyzing SF CDOs. As part of this review, Fitch makes
standard adjustments for any names on Rating Watch Negative or with a Negative
Outlook, downgrading such ratings for default analysis purposes by three and one
notches, respectively.

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, New York
Brian Vorderbrueggen, 212-908-9102
Kevin Kendra, 212-908-0760
or
Media Relations:
Sandro Scenga, 212-908-0278
Email: sandro.scenga@fitchratings.com

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