TEXT-Fitch release on KBH Loan Trust PTCs

(The following statement was released by the ratings agency)

Nov 12 - Fitch Ratings has today downgraded the National Long-term rating of Pass Through Certificates (PTCs) issued by KBH Loan Trust and assigned a negative Outlook as follows:

INR500m Series A1 PTCs downgraded to 'A-(ind)(SO)' (A minus(ind)(SO)) from 'A+(ind)(SO)'; Outlook Negative.

The Series A1 PTC's rating is directly linked to Fitch's National Long-term rating of Unitech Limited (UNTE.BO). The downgrade of the PTCs follows a downgrade of Unitech Limited's National Long-term and Short-term ratings to 'A-(ind)' (A minus(ind)) from 'A+(ind)' and to 'F2+(ind)' from 'F1+(ind)', respectively. The Outlook is Negative. For further information, please refer to the release titled 'Fitch Downgrades Unitech's Rating to 'A-(ind)'/'F2+ (ind)'; Revises Outlook to Negative', published 11th November 2008.

The maturity date of the Series A1 PTCs has been extended to 29 December 2008 from 31 October 2008 in accordance with the transaction documentation and with the consent of the PTC holders.

Rating Outlooks have been published for all newly issued Asia Pacific Structured Finance tranches since June 2008, and concurrently with rating actions for tranches issued prior to June 2008. Unlike a Rating Watch which notifies investors that there is a reasonable probability of a rating change in the short term, rating Outlooks indicate the likely direction of any rating change over a one- to two-year period.