Fitch: Ares Affiliates to Manage 3 CoLTS Middle-Market CLOs - Will Not Affect Ratings

CHICAGO--(Business Wire)--
Fitch Ratings has reviewed Ivy Hill Asset Management, L.P. (Ivy Hill), an
affiliate of Ares Capital Corporation (ARCC), and Ares Management LLC (Ares) as
sub-servicer and/or sub-manager for CoLTS 2005-1 Ltd./Corp. (CoLTS 2005-1),
CoLTS 2005-2 Ltd./Corp. (CoLTS 2005-2), and CoLTS 2007-1 Ltd./LLC (CoLTS
2007-1). Fitch has determined that the capabilities of Ivy Hill and Ares are
consistent with the current ratings assigned to the transactions.

On June 15, 2009 Fitch was notified that CoLTS 2005-1, CoLTS 2005-2 and CoLTS
2007-1 had executed sub-servicing and/or sub-management agreements with Ivy
Hill, and separate sub-servicing and/or sub-management agreements with Ares. Ivy
Hill and Ares will each separately manage a subset of the loans contained in the
three CoLTS transactions. Fitch's initial and on-going rating of CDO
transactions includes a review of the CDO asset manager and any sub-servicers to
determine whether they meet the appropriate standards. Fitch's review procedure
with respect to manager replacement is outlined in the special report entitled
'CDO Asset Manager Replacement Activity Update', dated April 24, 2009 and
available on Fitch's web site at www.fitchratings.com.

ARCC is a specialty finance company that is regulated as a business development
company (BDC) under the Investment Company Act of 1940. As a BDC, ARCC
specializes primarily in middle-market corporate lending. The company had
approximately $3.2 billion in assets under management as of March 31, 2009. ARCC
is managed by Ares Capital Management LLC, an affiliate of Ares Management LLC,
a Securities and Exchange Commission-registered investment adviser and
alternative asset investment management firm with over 250 employees and
approximately $28 billion in assets under management as March 31, 2009. ARCC
benefits from having a seasoned middle-market lending staff in addition to
having access to Ares' extensive collateralized loan obligation (CLO) platform
administrative resources. Together, the two entities have managed 14 CLOs with a
total original issuance of over $7.2 billion.

Fitch emphasizes that the scope of its review was solely to determine that Ivy
Hill and Ares meet Fitch's minimum guidelines to service and/or manage the
collateral under CoLTS 2005-1, CoLTS 2005-2 and CoLTS 2007-1 within the context
of Fitch's stated review procedure for replacement managers. Furthermore, this
review was in the context of the current management responsibilities associated
with CoLTS 2005-1, CoLTS 2005-2 and CoLTS 2007-1 and the current ratings
assigned to the CDOs by Fitch. Wachovia Bank and Structured Asset Investors,
LLC, as either servicer or collateral manager, will remain fully responsible for
their respective duties and obligations under the transaction documents for
CoLTS 2005-1, CoLTS 2005-2 and CoLTS 2007-1. Fitch is not a party to the
transaction and therefore does not provide consent or approval, as that remains
the sole preserve of the transaction parties.

CoLTS 2005-1 Ltd. is a cash flow middle-market CLO incorporated to issue
approximately $422.7 million of floating-rate notes and equity. The proceeds of
the issuance are invested in a static portfolio of U.S. middle-market, large
middle-market and broadly syndicated loans. The transaction portfolio has
amortized to approximately 10% of the initial portfolio balance as of the latest
trustee report available, March 2009.

CoLTS 2005-2 Ltd. is a cash flow middle-market CLO incorporated to issue
approximately $400 million of floating-rate notes and equity. The proceeds of
the issuance are invested in a revolving portfolio of U.S. middle-market loans.
The transaction recently exited its revolving period in March 2009.

CoLTS 2007-1 Ltd. is a cash flow middle-market CLO incorporated to issue
approximately $410.5 million of floating-rate notes and equity. Proceeds from
the issuance are invested in a portfolio of first lien and second lien
middle-market loans and broadly syndicated loans. The transaction is still in
its reinvestment period, which is scheduled to conclude in March 2012.

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
Russ Thomas, +1-312-368-3189
Gwen Fink-Stone, +1-212-908-9128 (Fund and Asset Manager Ratings)
Elizabeth Nugent, +1-212-908-9157 (Structured Credit)
Media Relations
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com

Copyright Business Wire 2009