Fitch Rates Morgan Stanley ABS Capital I Inc. $725MM 2004-NC5 Certificates.

NEW YORK -- Morgan Stanley ABS Capital I Inc. Trust 2004-NC5 are rated by Fitch as follows:

-- $588.797 million class A-1, A-2, A-3, and A-4 mortgage pass-through certificates 'AAA';

-- $45.292 million class M-1 mortgage pass-through certificates 'AA';

-- $38.045 million class M-2 mortgage pass-through certificates 'A';

-- $10.870 million class M-3 mortgage pass-through certificates 'A-';

-- $10.870 million class B-1 mortgage pass-through certificates are rated 'BBB+';

-- $9.058 million class B-2 mortgage pass-through certificates 'BBB';

-- $6.523 million class B-3 mortgage pass-through certificates 'BBB-';

-- $7.972 million un-offered class B-4 mortgage pass-through certificates not rated.

Credit enhancement for the 'AAA' class A certificates reflects the 17.75% subordination provided by classes M-1 through M-3 and B-1 through B-4, with monthly excess interest and initial overcollateralization (OC) of 1.00%. Credit enhancement for the 'AA' class M-1 certificates reflects the 11.50% subordination provided by class M-2, M-3, B-1, B-2, B-3, and B-4, with monthly excess interest and initial OC. Credit enhancement for the 'A' class M-2 certificates reflects the 6.25% subordination provided by class M-3, B-1, B-2, B-3, and B-4, with monthly excess interest and initial OC. Credit enhancement for the 'A-' class M-3 certificates reflects the 4.75% subordination provided by class B-1, B-2, B-3, and B-4, with monthly excess interest and initial OC. Credit enhancement for the 'BBB+' class B-1 certificates reflects the 3.25% subordination provided by class B-2, B-3, and B-4, with monthly excess interest and initial OC. Credit enhancement for the 'BBB' class B-2 certificates reflects the 2.00% subordination provided by class B-3 and B-4, with monthly excess interest and initial OC. Credit enhancement for the 'BBB-' class B-3 certificates reflects the 1.10% subordination provided by class B-4, with monthly excess interest and initial OC. Credit enhancement for the 'BB+' rating on the un-offered class B-4 is supported by monthly excess interest and initial OC of 1.00%. In addition, the ratings reflect the integrity of the transaction's legal structure, as well as the capabilities of HomEq Servicing Corporation as servicer. Deutsche Bank National Trust Company will act as trustee.

The mortgage pool consists of closed-end, first-lien fixed-rate and adjustable-rate subprime mortgage loans with an aggregate cut-off date principal balance of $724,673,794. Approximately 70.43% of the mortgage loans are adjustable-rate and 29.57% are fixed-rate loans. As of the cut-off date (June 1, 2004), the weighted average loan rate was approximately 7.031%. The weighted average remaining term to maturity is 351 months. The average cut-off date principal balance of the mortgage loans is approximately $170,992.82. The weighted average original loan-to-value ratio is 79.75%. The properties are primarily located in California (35.37%), New York (7.67%), and Florida (7.02%).

All of the mortgage loans were purchased by an affiliate of the depositor from NC Capital Corporation, which in turn were acquired from New Century Mortgage Corporation. New Century Mortgage Corporation, a wholly-owned subsidiary of New Century Financial Corporation, is a consumer finance and mortgage banking company that originates, sells, and services first and second mortgage loans and other consumer loans. New Century emphasizes the origination of mortgage loans that are commonly referred to as nonconforming 'B&C' loans. New Century commenced lending operations on Feb. 26, 1996.