NEW YORK -- Fitch has affirmed all classes of notes issued by Anthracite 2005-HY2 Ltd. (Anthracite 2005-HY2) as follows:
$115,093,693 Class A Notes affirmed at 'AAA';
$52,593,000 Class B Notes affirmed at 'AA';
$25,360,000 Class C-FL Notes affirmed at 'A';
$7,000,000 Class C-FX Notes affirmed at 'A';
$25,275,000 Class D-FL Notes affirmed at 'BBB';
$13,500,000 Class D-FX Notes affirmed at 'BBB';
$9,376,000 Class E Notes affirmed at 'BBB-';
$58,000,000 Class F Notes affirmed at 'BB';
$57,500,000 Class G Notes affirmed at 'B'.

Anthracite 2005-HY2 is a collateralized debt obligation (CDO), which closed July 26, 2005, and is supported by a static pool of commercial mortgage-backed securities (CMBS: 89.96%) and senior unsecured real estate investment trust securities (REIT: 10.04%). BlackRock Financial Management, Inc. (rated 'CAM1' by Fitch) selected the initial collateral and serves as the collateral administrator.

The affirmations reflect the expected performance of the underlying collateral. Since Fitch's last review, the CDO has experienced $0.8 million (0.17%) in paydowns, totaling $1.3 million since issuance based on the June 2007 trustee report. No losses have been incurred by the notes of the CDO to date. Although future losses are anticipated due to the concentration of first loss pieces (22.3% of the par value), the capital structure provides significant credit enhancement to the rated classes. Furthermore, all underlying CMBS transactions have a named special servicer with a Fitch rating of 'CSS1'.

The weighted average rating factor (WARF) has remained in the 'BB-/B+' category, with 6.74% of the portfolio being downgraded a weighted average of 1.9 notches and 5.22% upgraded a weighted average 3.3 notches. The CMBS assets in the collateral pool range from the 1998 vintage to the 2005 vintage, with approximately three years of seasoning.

Fitch conducted cash flow modeling utilizing various default timing and interest rate scenarios to measure the breakeven default rates going forward relative to the minimum cumulative default rates required for the rated liabilities.

The ratings on the class A and B notes address the timely payment of interest and ultimate payment of principal. The ratings on the class C-FL, C-FX, D-FL, D-FX, E, F and G notes address the ultimate payment of interest and ultimate payment of principal.

Fitch will continue to monitor and review this transaction for future rating adjustments. Additional deal information and historical data are available on the Fitch Ratings web site at www.fitchratings.com. (For more information on the Fitch VECTOR model, see 'Global Rating Criteria for Collateralised Debt Obligations,' dated Oct. 4, 2006, also available 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.