Correction: Fitch Rates BSABS $357.7MM Series 2006-SD3.

NEW YORK -- This is a correction for a previous message. It corrects the class I-B-5 and II-B-4 ratings.

Fitch rates Bear Stearns Asset Backed Securities (BSABS) Trust's asset-backed certificates, series 2006-SD3 as follows:

-- $48,451,000 class I-A-1A 'AAA';

-- $4,115,000 class I-A-1B 'AAA';

-- $5,760,000 class I-A-1C 'AAA';

-- $2,241,201 class I-PO 'AAA';

-- $31,915,000 class I-A-2A 'AAA';

-- $7,979,000 class I-A-2B 'AAA';

-- $67,802,000 class I-A-3 'AAA';

-- $40,673,000 class II-1A-1 'AAA';

-- $9,572,000 class II-1A-2 'AAA';

-- $30,853,000 class II-2A-1 'AAA';

-- $7,261,000 class II-2A-2 'AAA';

-- $39,421,000 class II-3A-1 'AAA';

-- $9,855,000 class II-3A-2 'AAA';

-- $9,112,000 class I-B-1 'AA';

-- $10,649,000 class II-B-1 'AA';

-- $4,362,000 class I-B-2 'A';

-- $5,325,000 class II-B-2 'A';

-- $2,908,000 class I-B-3 'BBB';

-- $2,949,000 class II-B-3 'BBB';

-- $2,714,000 class I-B-4 'BB';

-- $1,966,000 class I-B-5 'B';

-- $2,423,000 class II-B-4 'BB';

-- $1,556,000 class II-B-5 'B'.

The 'AAA' rating of class I certificates reflects the 13.20% credit enhancement provided by the 4.70% class I-B-1, 2.25% class I-B-2, 1.50% class I-B-3, 1.40% class I-B-4 (not offered), 1.25% class I-B-5 (not offered), and 2.10% class I-B-6 (not offered).

The 'AAA' rating of class II certificates reflects the 16% credit enhancement provided by the 6.50% class II-B-1, 3.25% class II-B-2, 1.80% class II-B-3, 1.20% class II-B-4 (not offered), 0.95% class II-B-5 (not offered), and 2.30% class II-B-6 (not offered). In addition, the ratings on the certificates reflect the quality of the underlying collateral, and Fitch's level of confidence in the integrity of the legal and financial structure of the transaction.

The mortgage pool consists of fixed- and adjustable-rate mortgage loans (ARMs) secured by first liens on one- to four-family residential properties. Loan Group I consists of fixed rate mortgages with an aggregate principal balance of $193,855,373. Loan Group II consists of hybrid ARMs, with an aggregate principal balance of 163,850,981. The class I certificates will be entitled to receive distributions solely with respect to Group I mortgage loans. The class II certificates will be entitled to receive distributions solely with respect to Group II mortgage loans. As of the cut-off date, Aug 1, 2006, the mortgage loans had a weighted average loan-to-value ratio (LTV) of 78.1%% and 75.64%, weighted average coupon (WAC) of 6.7% and 6.31%, and an average principal balance of $143,916 and $263,003, for loan group I and group II, respectively. Single-family properties account for 79.34% of the mortgage pool for group I and 60.13% for group II. The two largest state concentrations are California (15.21% and 32.28%), and Florida (11.68% and 12.02%) for the two loan groups.

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 releases issued May 1, 2003 entitled, 'Fitch Revises Rating Criteria in Wake of Predatory Lending Legislation' and February 23, 2005 entitled, 'Fitch Revises RMBS Guidelines for Antipredatory Lending Laws,' available on the Fitch Ratings web site at www.fitchratings.com.

Bear Stearns Asset Backed Securities I LLC deposited the loans into the trust, which issued the certificates, representing beneficial ownership in the trust. JPMorgan Chase Bank, N.A. will act as Trustee. Wells Fargo Bank N.A., rated 'RMS1' by Fitch, will act as Master Servicer for this transaction.

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.