Fitch Affirms $74.3MM & Downgrades $189MM from ABSC 2007-HE2.

NEW YORK -- Fitch Ratings has taken the following rating actions on Asset Backed Securities Corporation (ABSC) Home Equity Loan Trust 2007-HE2. Affirmations total $74.3 million and downgrades total $189 million. In addition, $87.6 million has been placed on Rating Watch Negative. Break Loss percentages (BL) and Loss Coverage Ratios (LCR) for each class are included with the rating actions as follows:

ABSC 2007-HE2

--$101.4 million class A1 downgraded to 'AA-' from 'AAA' (BL: 37.33, LCR: 1.94), placed on Rating Watch Negative;

--$74.3 million class A2 affirmed at 'AAA' (BL: 60.85, LCR: 3.17);

--$20.9 million class A3 rated 'AAA' (BL: 49.86, LCR: 2.60), placed on Rating Watch Negative;

--$30 million class A4 rated 'AAA' (BL: 39.20, LCR: 2.04), placed on Rating Watch Negative;

--$13.4 million class A5 downgraded to 'AA-' from 'AAA' (BL: 37.42, LCR: 1.95), placed on Rating Watch Negative;

--$16.4 million class M1 downgraded to 'A+' from 'AA+' (BL: 32.41, LCR: 1.69), placed on Rating Watch Negative;

--$16.4 million class M2 downgraded to 'A-' from 'AA' (BL: 27.42, LCR: 1.43), placed on Rating Watch Negative;

--$5 million class M3 downgraded to 'BBB+' from 'AA-' (BL: 25.87, LCR: 1.35), placed on Rating Watch Negative;

--$5 million class M4 downgraded to 'BBB' from 'A+' (BL: 24.28, LCR: 1.26), placed on Rating Watch Negative;

--$5.7 million class M5 downgraded to 'BBB-' from 'A' (BL: 22.43, LCR: 1.17), placed on Rating Watch Negative;

--$3.8 million class M6 downgraded to 'BBB-' from 'A-' (BL: 21.13, LCR: 1.10), placed on Rating Watch Negative;

--$5.1 million class M7 downgraded to 'BB' from 'BBB+' (BL: 19.29, LCR: 1.00), placed on Rating Watch Negative;

--$4.6 million class M8 downgraded to 'B' from 'BBB' (BL: 17.61, LCR: 0.92), placed on Rating Watch Negative;

--$5 million class M9 downgraded to 'B' from 'BBB-' (BL: 15.90, LCR: 0.83), placed on Rating Watch Negative;

--$6.7 million class M10 downgraded to 'CCC' from 'BBB-'.

Deal Summary

--Originators: Argent (100%);

--60+ day Delinquency: 11.66%;

--Realized Losses to date (% of Original Balance): 0.05%;

--Expected Remaining Losses (% of Current Balance): 19.21%;

--Cumulative Expected Losses (% of Original Balance): 18.28%.

The rating actions are based on changes that Fitch has made to its subprime loss forecasting assumptions. The updated assumptions better capture the deteriorating performance of pools from 2007, 2006 and late 2005 with regard to continued poor loan performance and home price weakness. Additional details are available in the following research, also available at www.fitchratings.com:

'Downgrade Criteria for Recent Vintage U.S. Subprime RMBS' (Aug. 8, 2007);

'U.S. Subprime RMBS/HEL Upgrade/Downgrade Criteria' (June 12, 2007).

All of Fitch's ratings criteria for US Subprime RMBS available at www.fitchratings.com/subprime. For a list of deals currently under analysis please visit www.fitchratings.com/smartview.

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.