TEXT-Fitch upgrades 1 class of G-Star 2003-3

Wed Nov 14, 2012 4:10pm EST

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Nov 14 - Fitch Ratings has upgraded one and affirmed five classes of G-Star
2003-3 Ltd./Corp (G-Star 2003-3) as a result of paydowns to the senior notes
offsetting the deterioration of the underlying collateral. A complete list of
rating actions follows at the end of this release.

Since Fitch's last rating action in December 2011, approximately 15.4% of the 
underlying collateral has been downgraded and 1.9% has been upgraded. Currently,
67.3% of the portfolio has a Fitch derived rating below investment grade and 
53.3% has a rating in the 'CCC' category and below, compared to 46.8% and 37.5%,
respectively, at the last rating action. Over this period, the class A-1 notes 
have received $47.5 million for a total of $309 million in pay downs since 
issuance.

This transaction was analyzed under the framework described in the report 
'Global Rating Criteria for Structured Finance CDOs' using the Portfolio Credit 
Model (PCM) for projecting future default levels for the underlying portfolio. 
The default levels were then compared to the breakeven levels generated by 
Fitch's cash flow model of the CDO under the various default timing and interest
rate stress scenarios, as described in the report 'Global Criteria for Cash Flow
Analysis in CDOs'. Fitch also analyzed the structure's sensitivity to the assets
that are distressed, experiencing interest shortfalls, and those with near-term 
maturities. Based on this analysis, the class A-1 notes' breakeven rates are 
generally consistent with the ratings assigned below.Global Rating Criteria for Structured Finance CDOsGlobal Criteria for Cash Flow Analysis in CDOs
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