Fitch Downgrades $511MM From 2 C-BASS Second Lien Transactions.

NEW YORK -- Fitch Ratings has taken various rating actions on the following Credit-Based Asset Servicing & Securitization (C-BASS) mortgage pass-through certificates. Downgrades total $511.0 million. In addition, $359.9 million is placed or remains on Rating Watch Negative. Break Loss percentages (BL) and Loss Coverage Ratios (LCR) for each class, rated 'B' or higher, are included with the rating actions as follows:

C-BASS, 2006-SL1

--$135.5 million class A-1 rated 'AAA,' placed on Rating Watch Negative (BL: 76.98, LCR: 1.51);

--$85.2 million class A-2 downgraded to 'BB' from 'A-' (BL: 61.28, LCR: 1.2);

--$21.3 million class A-3 downgraded to 'BB' from 'A-' (BL: 58.89, LCR: 1.16);

--$31.5 million class M-1 downgraded to 'B' from 'BBB' (BL: 51.86, LCR: 1.02);

--$30.1 million class M-2 downgraded to 'C/DR6' from 'BBB-';

--$19.4 million class M-3 downgraded to 'C/DR6' from 'BB+';

--$17 million class M-4 downgraded to 'C/DR6' from 'BB';

--$18.1 million class M-5 downgraded to 'C/DR6' from 'B+';

--$17.7 million class M-6 downgraded to 'C/DR6' from 'B';

--$19.7 million class B-1 revised to 'C/DR6' from 'C/DR5';

--$16 million class B-2 remains at 'C/DR6';

--$13.7 million class B-3 remains at 'C/DR6';

--$15 million class B-4 remains at 'C/DR6'.

Deal Summary

--Originators: Countrywide (73.25%) and OwnIt (19.42%);

--60+ day Delinquency: 16.3%;

--Realized Losses to date (% of Original Balance): 11.65%;

--Expected Remaining Losses (% of Current Balance): 50.88%;

--Cumulative Expected Losses (% of Original Balance): 45.23%.

C-BASS, 2007-SL1

--$94.2 million class A1 downgraded to 'A' from 'AAA,' remains on Rating Watch Negative (BL: 38.37, LCR: 0.79);

--$130 million class A2 downgraded to 'A' from 'AAA,' remains on Rating Watch Negative (BL: 37.72, LCR: 0.77);

--$9.9 million class M1 downgraded to 'C/DR6' from 'BB+';

--$7.6 million class M2 downgraded to 'C/DR6' from 'BB';

--$8.4 million class B1 downgraded to 'C/DR6' from 'BB-';

--$7.1 million class B2 downgraded to 'C/DR6' from 'B+';

--$6.4 million class B3 downgraded to 'C/DR6' from 'B';

--$6.4 million class B4 downgraded to 'C/DR6' from 'B'.

Deal Summary

--Originators: Countrywide (71.21%) and OwnIt (10.69%), MLN (10.61%);

--60+ day Delinquency: 11.2%;

--Realized Losses to date (% of Original Balance): 3.98%;

--Expected Remaining Losses (% of Current Balance): 48.70%;

--Cumulative Expected Losses (% of Original Balance): 45.53%.

The rating actions are based on deterioration in the relationship between credit enhancement and expected losses and reflect continued poor loan performance and home price weakness. Minimum LCR's specifically for subprime second lien transactions are as follows: AAA: 2.00; AA: 1.75; A: 1.50; BBB: 1.30; BB 1.10; B: 1.00. 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 U.S. subprime RMBS available at www.fitchratings.com/subprime. For a list of deals currently under analysis please visit www.fitchratings.com/smartview.

Further information regarding current delinquency, loss, and credit enhancement statistics is also available 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.