2008-08-01 22:59:04 -

- Fitch downgrades and removes from Rating Watch Negative the sole class of notes issued by Brit Alliance ABSpoke 2005-X (Brit Alliance ABSpoke). The following rating action is effective immediately:

--$30,000,000 Class A Notes downgraded to 'CC' from 'BB' and removed from Rating Watch Negative.

Brit Alliance Finance BV, ('Brit Alliance') is an unfunded managed synthetic CDO that

references a portfolio of various ABS assets that closed on June 7, 2006. The transaction is designed to provide credit protection for realized losses on the referenced portfolio through a credit default swap (CDS) between the Issuer (Brit Alliance) and the swap counterparty, Morgan Stanley Capital Services Inc. (MSCS). The referenced portfolio consists of subprime residential mortgage-backed securities (RMBS), Alternative-A (Alt-A) RMBS, and prime RMBS. Presently 55.6% of the portfolio is comprised of 2005, 2006 and 2007 vintage U.S. subprime RMBS and 6.4% is comprised of 2005, 2006 and 2007 vintage U.S. Alt-A RMBS.

This downgrade is a result of significant collateral deterioration within the reference portfolio, specifically subprime RMBS and Alt-A RMBS. Since Fitch's last review of Brit Alliance on November 12, 2007, approximately 71.0% of the portfolio has been downgraded and 1.6% of the portfolio is currently on Rating Watch Negative. 68.8% of the portfolio is now rated below investment grade, of which 42.5% is rated 'CCC+' and below. Fitch notes that, overall, 68.3% of the assets in the portfolio now carry a rating below the rating it assumed in November 2007. The negative credit migration experienced since the last review on November 12, 2007 has resulted in the Weighted Average Rating Factor deteriorating to 36.5 from 13.4 at last review.

The attachment point of the class A note has increased to 16.06% from 11.00% due to the capital structure delevering as a result of asset amortization. However, this remains well below the current 'CCC' rating loss rate. In addition, while there are no credit events officially declared as of the March 7, 2008 trustee report, current ratings indicate that rating downgrade credit events may be declared as of the next trustee report which will adversely affect the transaction.

The class is removed from rating watch, as Fitch believes further negative migration in the portfolio will have a lesser impact on the class. Additionally, Fitch is reviewing its SF CDO approach and will comment separately on any changes and potential rating impact at a later date.

The rating on the class A note addresses the likelihood that the issuer will have to make protection payments to MSCS under the terms of the CDS.

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, 212-908-9102, New York
Alina Pak, 312-368-3184, Chicago
or
Media Relations:
Sandro Scenga, 212-908-0278, New York