TEXT-Fitch affirms Fresco 2 Limited MyZA

July 12 - Fitch Ratings has affirmed Fresco 2 Limited (Fresco 2) as follows:

Class A1: affirmed at 'BBB(zaf)'; Outlook Stable
Class A2: affirmed at 'BBB(zaf)'; Outlook Stable
Class B1: affirmed at 'BB(zaf)'; Outlook Stable
Class B2: affirmed at 'BB(zaf)'; Outlook Stable
Class C: affirmed at 'B+(zaf)'; Outlook Stable
Class D: affirmed at 'B(zaf)'; Outlook Stable
Class E: affirmed at 'B(zaf)'; Outlook Stable
Class F: affirmed at 'B(zaf)'; Outlook Stable
Class G: affirmed at 'B-(zaf)'; Outlook Stable

The affirmation reflects the portfolio's stable performance. Since closing, the
transaction has performed well and only suffered two credit events. The
settlement of the credit events did not incur a writedown of any notes as excess
spread captured by the structure was sufficient to absorb the losses.

Fresco 2, which is incorporated under South Africa law, is a partially funded
synthetic securitisation of a portfolio of South African and international
credit exposures held on FirstRand Bank's balance sheet. At closing on 17 July
2007, Fresco 2 entered into a credit default swap with FirstRand Bank whereby
Fresco 2, as the protection seller, purchased the portfolio's credit risk from
FirstRand Bank. The transaction is a managed transaction with synthetic excess
spread trapped once actual losses are recorded.Additional information is available at www.fitchratings.com.

The ratings above were solicited by, or on behalf of, the issuer, and therefore,
Fitch has been compensated for the provision of the ratings.

The sources of information used to assess these ratings are the issuer report
prepared by Rand Merchant Bank and communications with Rand Merchant Bank.

Applicable criteria, 'Global Rating Criteria for Corporate CDOs', dated 10
August 2011, 'Counterparty Criteria for Structured Finance Transactions', dated
30 May 2012 are available at www.fitchratings.com.

Applicable Criteria and Related Research:
Global Rating Criteria for Corporate CDOs
Counterparty Criteria for Structured Finance Transactions