BSABS' $195MM A-B Certificates Series 2003-SD2 Rated By Fitch.

Business Editors

NEW YORK--(BUSINESS WIRE)--Nov. 3, 2003

Fitch rates Bear Stearns Asset Backed Securities (BSABS) Trust's asset-backed certificates, series 2003-SD2, as follows:

-- $175,329,800 classes I-A, II-A, and III-A (senior

certificates) and classes R-I and R-II (residual certificates)

'AAA';

-- $7,898,700 class B-1 'AA';

-- $6,547,700 class B-2 'A';

-- $5,196,400 class B-3 'BBB'.

The 'AAA' rating on the senior certificates reflects the 15.65% subordination provided by the 3.80% class B-1, 3.15% class B-2, 2.50% class B-3, 1.85% privately offered class B-4, 1.25% privately offered class B-5 and 3.10% privately offered class B-6. The ratings also reflect the quality of the underlying mortgage collateral, the capabilities of EMC Mortgage Corp., Wells Fargo Home Mortgage, Inc., and Washington Mutual Bank, FA as servicers (rated 'RSS1', 'RPS1' and 'RPS2', respectively, by Fitch), and Fitch's confidence in the integrity of the legal and financial structure of the transaction.

The transaction comprises three groups of mortgage loans, secured by first liens on primarily one- to four-family residential properties, with a total of 1,136 loans. The groups consist of fully amortizing, adjustable-rate and hybrid mortgage loans. The hybrid mortgage loans are adjustable-rate mortgage loans (ARMs) that provide for a fixed interest rate during an initial period. Thereafter, the interest rate will adjust on an annual basis based on an index plus a gross margin. The three loan groups are cross-collateralized.

Group I consists of mortgage loans, with interest rates based on various indices. The next interest adjustment date with respect to all group I mortgage loans will occur in less than 24 months following the closing date. The group has an aggregate principal balance of approximately $52,550,515 as of the cut-off date (Oct. 1) and a weighted average remaining term to maturity of 329 months. The weighted average original loan-to-value ratio (OLTV) for the mortgage loans is approximately 78.13%. Rate/term and cash out refinances account for 15.82% and 46.28% of the loans in Group I, respectively. The weighted average FICO credit score for the group is 588. Owner occupied and second home properties comprise 92.20% and 3.36% of the loans in Group I, respectively. The states that represent the largest portion of mortgage loans are California (23.35%), Florida (8.279%), Illinois (6.50%), and New Jersey (5.30%). All other states represent less than 5% of the outstanding balance of the pool.

Group II consists of hybrid mortgage loans in their fixed rate period, which, upon conversion, will have interest rates based on various indices. Their first interest adjustment date with respect to all group II mortgage loans will occur 24 months or more following the closing date. The group has an aggregate principal balance of approximately $121,941,185 as of the cut-off date and a weighted average remaining term to maturity of 351 months. The weighted average OLTV for the mortgage loans is approximately 72.97%. Rate/term and cash out refinances account for 32.26% and 27.88% of the loans in Group II, respectively. The weighted average FICO credit score for the group is 693. Owner occupied and second home properties comprise 90.45% and 4.51% of the loans in Group II, respectively. The states that represent the largest portion of mortgage loans are California (23.40%), Florida (6.65%), New Jersey (5.79%), Illinois (5.68%), and Colorado (5.43%). All other states represent less than 5% of the outstanding balance of the pool.

Group III consists of ARMs, substantially all of which are based on the 11th District Cost of Funds Index (COFI). The group has an aggregate principal balance of approximately $33,368,268 as of the cut-off date and a weighted average remaining term to maturity of 259 months. The weighted average OLTV for the mortgage loans is approximately 76.83%. Rate/Term and cashout refinances account for 21.05% and 21.66% of the loans in Group III, respectively. The weighted average FICO credit score for the group is 609. Owner occupied and second home properties comprise 83.21% and 0.12% of the loans in Group III, respectively. The states that represent the largest portion of mortgage loans are California (65.73%), and New York (5.82%). All other states represent less than 5% of the outstanding balance of the pool.

None of the mortgage loans are 'high cost' loans as defined under any local, state or federal laws. For additional information on Fitch's rating criteria regarding predatory lending legislation, please see the press release issued May 1, 2003 entitled, 'Fitch Revises Rating Criteria in Wake of Predatory Lending Legislation', available on the Fitch Ratings web site at 'www.fitchratings.com'.

Bear Stearns Asset Backed Securities, Inc. deposited the loans in the trust, which issued the certificates, representing undivided beneficial ownership in the trust. For federal income tax purposes, elections will be made to treat the trust as three separate real estate mortgage investment conduits (REMICs). JP Morgan Chase Bank will act as trustee.