Fitch Affirms 22 & Lowers 8 RMBS Classes From 5 Long Beach Transactions.

NEW YORK -- Fitch has taken the following rating actions on the Long Beach Mortgage Loan Trust RMBS issues listed below:

Series 2001-4 Group 1

    --  Class I-A affirmed at 'AAA';
    --  Class I-M2 downgraded to 'CCC' from 'BB'/assigned 'DR2'
        Distressed Recovery (DR) rating;
    --  Class I-M3 remains at 'C/DR6'.

    Long Beach Mortgage Loan Trust, Series 2001-4 Group 2

    --  Classes II-A1 and II-A3 affirmed at 'AAA';
    --  Class II-M1 downgraded to 'A-' from 'AA-';
    --  Class II-M2 downgraded to 'CCC' from 'BB'/assigned 'DR2'
        Distressed Recovery rating;
    --  Class II-M3 remains at 'C/DR6'.

    Long Beach Mortgage Loan Trust, Series 2003-1

    --  Class A-1 affirmed at 'AAA';
    --  Class M-2 affirmed at 'A';
    --  Class M-3 affirmed at 'BBB' and removed from Rating Watch
        Negative;
    --  Class M-4 downgraded to 'BB-' from 'BBB-' and removed from
        Rating Watch Negative.

    Long Beach Mortgage Loan Trust, Series 2003-2

    --  Class M-1 affirmed at 'AA';
    --  Class M-2 affirmed at 'A';
    --  Class M-3 affirmed at 'A-';
    --  Class M-4 downgraded to 'BBB' from 'BBB+' and removed from
        Rating Watch Negative;
    --  Class M-5 downgraded to 'BBB-' from 'BBB' and removed from
        Rating Watch Negative.

    Long Beach Mortgage Loan Trust, Series 2003-3

    --  Class M-1 affirmed at 'AA';
    --  Class M-2 affirmed at 'A';
    --  Class M-3 downgraded to 'BBB-' from 'BBB' and removed from
        Rating Watch Negative;
    --  Class M-4 downgraded to 'BB-' from 'BBB-' and removed from
        Rating Watch Negative.

    Long Beach Mortgage Loan Trust, Series 2003-4

    --  Class AV-1 affirmed at 'AAA';
    --  Class M-1 affirmed at 'AA';
    --  Class M-2 affirmed at 'A';
    --  Class M-3 affirmed at 'A-';
    --  Classes M-4A and M-4F affirmed at 'BBB+';
    --  Classes M-5A and M-5F affirmed at 'BBB';
    --  Class M-6 affirmed at 'BBB-' and removed from Rating Watch
        Negative.

All of the mortgage loans in the aforementioned transactions were either originated or acquired by Long Beach Mortgage Company. The mortgage loans consist of fixed- and adjustable-rate subprime mortgage loans and are secured by first- and second-lien mortgages or deeds of trust on residential properties. As of the July 2006 distribution date, the transactions are seasoned from a range of 36 (series 2003-4) to 53 (series 2001-4) months, and the pool factors (current mortgage loan principal outstanding as a percentage of the initial pool) range from approximately 5% (series 2001-4 Group 2) to 18% (series 2003-4). Long Beach Mortgage Company is the master servicer for all of the transactions detailed above, and Washington Mutual Bank, FA (rated 'RPS2' for subprime products by Fitch) is the subservicer for all of the mortgage loans.

The affirmations reflect a satisfactory relationship between credit enhancement (CE) and future loss expectations and affect approximately $910.36 million of outstanding certificates. Specifically, the affirmations on class I-A in series 2001-4 and class A-1 in series 2003-1 reflect a guaranty provided by the Federal National Mortgage Association (Fannie Mae), whose financial strength is rated 'AAA' by Fitch.

The downgrades, affecting approximately $113.10 million of outstanding certificates, reflect continued deterioration in the relationship between CE and future loss expectations. All of the transactions affected by the downgrades are generally experiencing monthly losses that exceed the available excess spread, resulting in substantial deterioration of overcollateralization (OC) and preventing the OC from maintaining its target amount. In the most severe example, OC of series 2001-4 Group 1 has been fully depleted and the most subordinate certificates have suffered principal write-downs. Fitch will closely monitor the relationship between excess spread and monthly losses for those transactions in the upcoming months.

In regard to series 2001-4 transaction, classes M-2 and M-3 represent interests in two loan groups and, solely for purposes of determining distributions of principal and interest and the allocation of losses realized on mortgage loans, each class consists of two components: I-M2 and II-M2; I-M3 and II-M3. The CE for a component class may differ between the loan groups. However, a default of a component class would result in a default of the entire class and therefore Fitch's ratings reflect the credit risk to the weaker of the two components.

Of particular note, the performance of these transactions has also been adversely affected by a growing concentration of loans secured with manufactured homes (MH). While the percentage of MH loans in the initial pool balance was relatively modest, the MH loans have made up a disproportionately large percentage of the liquidated loans and, due to relatively slow voluntary prepayments, have become a significant percentage of the remaining pool balance. As of July 2006, the MH concentration (as a percentage of current pool balance) of series 2001-4 Group 1 and 2001-4 Group 2 is approximately 23% and 2.7% (originally 7.7% and .50%), respectively. For transactions issued in 2003 the MH concentration ranges from 9.4% (series 2003-1) to 10.5% (series 2003-2 and series 2003-3) (originally from 2.5% to 3%).

Further information regarding current delinquency, loss, and credit enhancement statistics is available on the Fitch Ratings web site at www.fitchratings.com.

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.