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Long Beach Mortgage Loan Trust 2004-1 Ratings Lowered On Two Classes; 10 Ratings Affirmed
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Publication Date:    Sep 25, 2007 16:10 EST

Long Beach Mortgage Loan Trust 2004-1 Ratings Lowered On Two Classes; 10 Ratings Affirmed
Primary Credit Analyst:
John Schuk, New York (1) 212-438-5102;
john_schuk@standardandpoors.com
Secondary Credit Analyst:
Ernestine Warner, New York (1) 212-438-2633;
ernestine_warner@standardandpoors.com
Publication date: 25-Sep-07, 16:10:28 EST
Reprinted from RatingsDirect 


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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