Fitch Rates Morgan Stanley ABS Capital I Trust $1.4B Mtge P-T Ctfs 2004-NC3.

Business Editors

NEW YORK--(BUSINESS WIRE)--April 16, 2004

Morgan Stanley ABS Capital I Inc. Trust's mortgage pass-through certificates, series 2004-NC3, are rated by Fitch Ratings as follows:

-- $1.2 billion class A-1, A-2, A-3 and A-4 'AAA';

-- $84.9 million class M-1 'AA';

-- $74.3 million class M-2 'A';

-- $21.2 million class M-3 'A-';

-- $17.7 million class B-1 'BBB+';

-- $17.7 million class B-2 'BBB';

-- $16.3 million class B-3 'BBB-';

-- $12.7 million un-offered class B-4 'BB+'.

Credit enhancement for the 'AAA' class A certificates reflects the 17.30% subordination provided by classes M-1 through M-3 and B-1 through B-4, monthly excess interest and initial overcollateralization (OC) of 1.20%. Credit enhancement for the 'AA' class M-1 certificates reflects the 11.30% subordination provided by class M-2, M-3, B-1, B-2, B-3 and B-4, monthly excess interest and initial OC. Credit enhancement for the 'A' class M-2 certificates reflects the 6.05% subordination provided by class M-3, B-1, B-2, B-3 and B-4, monthly excess interest and initial OC. Credit enhancement for the 'A-' class M-3 certificates reflects the 4.55% subordination provided by class B-1, B-2, B-3 and B-4, monthly excess interest and initial OC. Credit enhancement for the 'BBB+' class B-1 certificates reflects the 3.30% subordination provided by class B-2, B-3 and B-4, monthly excess interest and initial OC. Credit enhancement for the 'BBB' class B-2 certificates reflects the 2.05% subordination provided by class B-3 and B-4, monthly excess interest and initial OC. Credit enhancement for the 'BBB-' class B-3 certificates reflects the 0.90% subordination provided by class B-4, 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 1.20%. In addition, the ratings reflect the integrity of the transaction's legal structure as well as the capabilities of Countrywide Home Loans Servicing LP 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 principal balance of $1,414,945,071. Approximately 73.57% of the mortgage loans are adjustable-rate and 26.43% are fixed-rate loans. As of the cut-off date (April 1, 2004), the weighted average loan rate is approximately 7.128%. The weighted average remaining term to maturity (WAM) is 349 months. The average cut-off date principal balance of the mortgage loans is approximately $171,363. The weighted average original loan-to-value ratio (OLTV) is 80.25%. The properties are primarily located in California (41.41%), Florida (5.96%) and New York (5.56%).

All of the mortgage loans were purchased by an affiliate of the depositor from New Century 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 non-conforming "B&C" loans. New Century commenced lending operations on February 26, 1996.