2008-09-19 23:23:01 -

- Fitch Ratings has downgraded the secured liquidity notes (SLNs) issued by Lakeside Funding LLC (Lakeside) to 'F1' from 'F1+' and placed them on Rating Watch Evolving. The proceeds of the SLNs were used to purchase the class A-1 first priority senior secured notes issued by Lakeside CDO I, Ltd. and Lakeside CDO I, Inc. Lakeside entered into a put

agreement with AIG Financial Products (AIG-FP) whose payment obligations are absolutely and unconditionally guaranteed by American International Group (rated 'A/F1' Rating Watch Evolving by Fitch). The action taken on the SLNs is the result of Fitch revising its short-term rating and rating watch on American International Group, Inc's to 'F1' Rating Watch Evolving.

For further information on the rating actions taken on AIG, please see 'Fitch Discusses AIG Rating Watch Revision in Light of Federal Reserve Actions' dated Sep 17, 2008 and available on the Fitch Ratings web site 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, New York
Aniello Forcellati, 212-908-0747
Darryl Osojnak, 212-908-0602
Michael Dean, 212-908-0556
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