Fitch Downgrades 13 & Affirms 4 classes from 2 RMBS Lehman MH Securitizations.

NEW YORK -- The following rating actions have been taken on Lehman Manufactured Housing (MH) mortgage-backed securities:

Lehman ABS Corp. series 1998-1 group I:

-- Class I-IO affirmed at 'AAA';

-- Class I-A-1 downgraded to 'A+' from 'AA'.

Lehman ABS Corp. series 1998-1 group II:

-- Class II-IO downgraded to 'CC' from 'AA-';

-- Classes II-A-1 & II-A-2 are downgraded to 'B-' from 'B'.

Lehman ABS Corp. series 2001-B

-- Classes AIO2 and AIO3 affirmed at 'AAA';

-- Classes A1 to A6 downgraded to 'AA' from 'AAA';

-- Class A7 affirmed at 'AAA';

-- Class M1 downgraded to 'BBB+' from 'AA';

-- Class M2 downgraded to 'BB' from 'A';

-- Class B1 downgraded to 'B-' from 'BB'

-- Class B2 remains at 'C.'

The affirmation on Lehman MH 2001-B class A7 ($191 million) is due to the certificate guaranty insurance policy issued on the class by Ambac Assurance Corporation. With this policy, class A7 is guaranteed timely payment of interest and ultimate payment of principal. Ambac Assurance Corporation's insurer financial strength (IFS) rating is 'AAA'. The downgrades on Lehman MH 2001-B, affecting approximately $660 million, reflect the deterioration in the relationship between credit enhancement and the expected loss on the remaining pool balance. Fitch expects the remaining pool balance to incur a loss of approximately 25%.

The Lehman Manufactured Housing 1998-1 transaction is collateralized with classes from 11 Green Tree MH transactions. Due to the lack of additional credit enhancement, the credit risk of the transaction is directly tied to the credit risk of the underlying Green Tree classes. The credit risk on some of the underlying classes has recently increased, as reflected in the negative rating actions taken on those classes in May of 2005 (see 'Fitch Takes Rating Actions on $11.6B of Conseco/Green Tree MH Transactions,' dated May 13, 2005, available on the Fitch web site at www.fitchratings.com). The increased credit risk to the underlying classes has created the need for negative rating action on this transaction. The downgrades affect approximately $130 million. Class II-IO is downgraded due to a concern of the likelihood of an interest shortfall on the underlying classes, Green Tree MH 1995-9 class M-1 and Green Tree MH 1996-3 class M-1.

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.