Fitch Takes Various Rtg Actions on 2 Long Beach Mortgage Loan Trust Transactions

Long Beach Mortgage Loan Trust, Series 2003-2

--Class M-1 affirmed at 'AA';

--Class M-2 affirmed at 'A';

--Class M-3 rated 'BBB+', placed on Rating Watch Negative;

--Class M-4 downgraded to 'B' from 'BBB-';

--Class M-5 downgraded to 'CCC/DR1' (DR) from 'BB+'.

Long Beach Mortgage Loan Trust, Series 2004-2

--Class A affirmed at 'AAA';

--Class M-1 affirmed at 'AA';

--Class M-2 affirmed at 'A+';

--Class M-3 affirmed at 'A';

--Class M-4 affirmed at 'A-';

--Class M-5 affirmed at 'BBB+';

--Class M-6 rated 'BBB', placed on Rating Watch Negative;

--Class M-7 downgraded to 'BB-' from 'BBB-';

--Class B downgraded to 'CCC/DR1 from 'BB'.

All of the mortgage loans in the aforementioned transactions were either originated or acquired by Long Beach Mortgage Company. The mortgage loans consist of fixed- and adjustable-rate subprime mortgage loans and are secured by first- and second-lien mortgages or deeds of trust on residential properties. As of the October 2007 distribution date, series 2003-2, 2004-2 are 54 and 41 months seasoned, respectively. The pool factors (current mortgage loan principal outstanding as a percentage of the initial pool) are approximately 8% (series 2003-2) and 16% (series 2004-2). Washington Mutual Mortgage Securities Corporation, rated 'RMS2+' is the master servicer for all of the transactions detailed above.

The affirmations, affecting approximately $288.8 million in outstanding certificates, reflect adequate levels of credit enhancement (CE) relative to expected losses.

The downgrades, affecting approximately $15.8 million, are the result of deterioration in the relationship between CE and expected losses. The affected bonds have serious delinquencies (loans delinquent more than 60 days, inclusive of loans in foreclosure, bankruptcy, and real estate owned (REO)) of 22.49% (2003-2) and 14.26% (2004-2) and current cumulative losses of 2.89% (2003-2) and 1.18% (2004-2).

Class M-3 from 2003-2 was placed on Rating Watch Negative due to trends in serious delinquencies and losses. The transaction has serious delinquencies of 22.49% of the current pool balance. Losses have exceeded excess spread for the last five out of six months, by an average of approximately $254,000 per month. Class M-6 from 2004-2 was also placed on Rating Watch Negative due to trends in serious delinquencies and losses. The transaction has serious delinquencies of 14.26% of the current pool balance. Losses have exceeded excess spread for the last five out of six months, by an average of approximately $538,000 per month.

Fitch will monitor this transaction over the next six months to see how loans move through the delinquency pipeline. If credit enhancement continues to deteriorate, further rating actions may be necessary.

Fitch's Distressed Recovery (DR) ratings, introduced in April 2006 across all sectors of structured finance, are designed to estimate recoveries on a forward-looking basis while taking into account the time value of money. For more information on Distressed Recovery ratings, see the full report ('Structured Finance Distressed Recovery Ratings'), which is available on the Fitch Ratings web site at .

Further information regarding current delinquency, loss, and credit enhancement statistics is available on the Fitch Ratings web site at .

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, . 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.