Fitch Affirms $886.9MM & Downgrades $68.3MM From 1 New Century Subprime Deal.

NEW YORK -- Fitch Ratings has taken the following rating actions on New Century Mortgage Corporation's mortgage pass-through certificates. Affirmations total $886.9 million and downgrades total $68.3 million. Break Loss percentages (BL) and Loss Coverage Ratios (LCR) for each class are included with the rating actions as follows:

Series 2006-1

--$712.7 million class A affirmed at 'AAA' (BL: 33.47, LCR: 2.63);

--$54 million class M-1 affirmed at 'AA+' (BL: 30.68, LCR: 2.41);

--$48.5 million class M-2 affirmed at 'AA' (BL: 26.85, LCR: 2.11);

--$26 million class M-3 affirmed at 'AA-' (BL: 24.30, LCR: 1.91);

--$23.2 million class M-4 affirmed at 'A+' (BL: 22.02, LCR: 1.73);

--$22.5 million class M-5 affirmed at 'A' (BL: 19.80, LCR: 1.56);

--$21.2 million class M-6 downgraded to 'BBB+' from 'A-'(BL: 17.64, LCR: 1.39);

--$18.4 million class M-7 downgraded to 'BBB' from 'BBB+'(BL: 15.68, LCR: 1.23);

--$13.7 million class M-8 downgraded to 'BBB-' from 'BBB'(BL: 14.22, LCR: 1.12);

--$15 million class M-9 downgraded to 'BB' from 'BBB-'(BL: 12.77, LCR: 1.00).

Deal Summary:

--Originators: New Century (100%);

--60+ day Delinquency: 16.92%;

--Realized Losses to date (% of Original balance): 0.30%;

--Expected Remaining Losses (% of Current Balance): 12.72%;

--Cumulative Expected Losses (% of Original Balance): 9.55%.

These transactions were placed on 'Under Analysis' on July 12, 2007 (for more information, see the July 12, 2007 press release, 'Fitch SMARTView: 170 U.S. Subprime RMBS Transactions Placed Under Analysis', available on the Fitch Ratings web site at www.fitchratings.com). The rating actions are based on changes that Fitch has made to its subprime loss forecasting assumptions adopted after the analysis of the June 2007 remittance data. The updated assumptions better capture the deteriorating performance of pools from 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:

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

--'Fitch Affirms $20B & Downgrades $2.4B of U.S. Subprime RMBS; New 2005-2006 Surveillance Criteria' (Aug. 1, 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.