Fitch Downgrades $156.5MM from 1 New Century Second Lien Deal.

NEW YORK -- Fitch Ratings has taken the following rating actions on one New Century mortgage pass-through certificate transaction. Downgrades total $156.5 million. Break Loss percentages (BL) and Loss Coverage Ratios (LCR) for each class, rated 'B' or higher, are included with the rating actions as follows:

New Century 2006-S1

--$53.6 million class A-1 downgraded to 'B' from 'BBB-' (BL: 50.23, LCR: 0.88);

--$32.7 million class A-2a downgraded to 'B' from 'AAA' (BL: 50.23, LCR: 0.88);

--$33.1 million class A-2b downgraded to 'B' from 'BBB-' (BL: 50.23, LCR: 0.88);

--$37.0 million class M-1 downgraded to 'C/DR6' from 'B+';

--$22.5 million class M-2 remains at 'C/DR6';

--$5.7 million class M-3 remains at 'C/DR6';

--$6.2 million class M-4 remains at 'C/DR6';

--$744,414 class M-5 remains at 'C/DR6';

--$0.0 class M-6 remains at 'C/DR6';

--$0.0 class M-7 remains at 'C/DR6';

--$0.0 class M-8 remains at 'C/DR6'.

Deal Summary

--Originators: 100% New Century;

--60+ day Delinquency: 26.94%;

--Realized Losses to date (% of Original Balance): 15.56%;

--Expected Remaining Losses (% of Current Balance): 57.32%;

--Cumulative Expected Losses (% of Original Balance): 50.75%.

While Fitch's analysis takes into consideration the sequential distribution of principal to the senior classes, under Fitch's revised base-case expectation the senior tranche will become under-collateralized prior to any of the senior classes paying off in full. Once the senior tranche has become under-collateralized, the distribution of principal to the senior classes will become pro rata. For that reason, Fitch does not make a distinction in long-term credit risk among the senior classes for this particular transaction.

In addition, 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. Minimum LCRs specifically for subprime second lien transactions are as follows: 'AAA': 2.00; 'AA': 1.75; 'A': 1.50; 'BBB': 1.20; 'BB' 0.95; 'B': 0.75. Additional details are available in the following research, 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, along with a list of deals currently under analysis, are available at 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.