Fitch Affirms 3, Upgrades 1 and Downgrades 3 classes from 2 Aegis Asset-Backed Securities.

NEW YORK -- Fitch Ratings has taken the following rating actions on two Aegis Asset-Backed Securities:

Series 2003-1

-- Class A1 affirmed at 'AAA';

-- Class M1 affirmed at 'AA';

-- Class M2 downgraded to 'BBB+' from 'A';

-- Class B1 downgraded to 'CC' from 'BB'/ Assigned DR rating of 'DR3'.

Series 2003-2

-- Class M1 upgraded to AA+ from 'AA';

-- Class M2 affirmed at 'A';

-- Class B downgraded to 'BB+' from 'BBB' and removed from Rating Watch Negative.

The collateral for the above pools consists of primarily conventional, first lien, adjustable- and fixed-rate, fully amortizing and balloon, residential mortgage loans extended to sub-prime borrowers. The seller, Aegis Mortgage Corporation, is a privately held mortgage banking company that originates residential mortgage loans.

The upgrades reflect an improvement in the relationship of CE to future loss expectations and affect approximately $5.4 million in outstanding certificates. The affirmations affect approximately $33.6 million in outstanding certificates and reflect adequate relationships of credit enhancement (CE) to future loss expectations. The downgrades reflect deterioration in the relationship of CE to future loss expectations and affect approximately $26.17 million of outstanding certificates.

Series 2003-1 has had eight consecutive months where losses have exceeded excess spread resulting in a consistent decrease in the overcollateralization (OC) as a dollar amount and percentage. As of the November 2006 distribution period, the OC amount is $574,236 and the target amount is at the floor amount of $1,431,697. The CE of class B is currently 1.76%.

In April 2006, Fitch placed the class B of Series 2003-2 on Rating Watch Negative due to deterioration in the OC. At the time of that action, the trust had experienced six months in which the OC was below target. Since that time, losses have continued to exceed excess spread. The OC amount remained below the target amount until October 2006 when the trust was 36 months seasoned and passed all of the trigger tests, which resulted in the stepdown of the OC target. The OC target was reduced to an amount below the outstanding OC and the OC amount has not yet declined to the new target amount. However, Fitch expects losses to continue to exceed excess spread and for the OC amount to decline below the new target amount resulting in increased credit risk to the class B.

The above series are being serviced by Chase Manhattan Mortgage Corporation (rated 'RPS1' by Fitch Ratings).

Fitch's Distressed Recovery (DR) ratings, introduced in April 2006 across all sectors of structured finance, are designed to estimate recoveries on a forward-looking basis while taking into account the time value of money. For more information on Distressed Recovery ratings, see the full report ('Structured Finance Distressed Recovery Ratings'), which 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.