NEW YORK (Standard & Poor's) Sept. 25, 2007--Standard & Poor's Ratings
Services today lo
wered its ratings on two classes of mortgage-backed
securities issued by Long Beach Mortgage Loan Trust 2004-1. Concurrently, we
affirmed our ratings on the remaining 10 classes from this transaction (see
list).
The downgrades of classes M-9 and B reflect a reduction in credit
enhancement resulting from monthly realized losses as well as a high amount of
severe delinquencies (90-plus days, foreclosures, and REOs). Monthly realized
losses have exceeded excess interest during the past six months. As of the
August remittance date, the average monthly loss was $1,908,819 over the past
six months, while excess spread averaged $733,409 for the same period. There
is $55,749,800 in severe delinquencies, compared with $18,447,817 in
overcollateralization. Overcollateralization currently amounts to 0.40% of the
original pool balance, 10 basis points below its target.
The affirmations reflect sufficient credit enhancement for the current
ratings. The classes with affirmed ratings have actual and projected credit
support percentages that are in line with their original levels.
Subordination, overcollateralization, and excess spread provide credit
support for this transaction. The collateral for this transaction consists
primarily of fixed- and adjustable-rate mortgage loans secured by first liens
on one- to four-family residential properties.
RATINGS LOWERED
Long Beach Mortgage Loan Trust 2004-1
Rating
Series Class To From
2004-1 M-9 BBB- AA-
2004-1 B BB A+
RATINGS AFFIRMED
Long Beach Mortgage Loan Trust 2004-1
Series Class Rating
2004-1 A-1, A-2, M-1 AAA
2004-1 M-2, M-3, M-4 AAA
2004-1 M-5, M-6 AAA
2004-1 M-7 AA+
2004-1 M-8 AA
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