Long Beach ABS Classes Downgraded

Sixteen certificates from six deals issued by Long Beach Mortgage Co. in 2000 and 2001 have been downgraded by Moody's Investors Service.The downgrades of asset backed certificates issued by Long Beach Home Mortgage Loan Trust were as follows: series 2000-1, class M-1, from Aa2 to A2; class M-2, from Baa3 to B1, and class M-3, from B2 to Caa2; series 2001-1, class M-1, from Aa2 to A1, class M-2, from Baa2 to Ba3, and class M-3, from B1 to Caa1; series 2001-2, class M-1, from Aa2 to A1, class M-2, from Baa2 to B1, and class M-3, from B2 to Ca; series 2001-3, class M-2, from Baa2 to Ba3, and class M-3, from B1 to Caa3; and series 2001-4, class M-3, from Ba3 to Caa1. In the sixth deal, issued by Asset Backed Securities Corp., Long Beach Home Equity Loan Trust 2000-LB1, class M1F was downgraded from Aa2 to A3, class M2F from Ba1 to B3, class BF from Ca to C, and class BV from Baa3 to B3. The downgrades were attributed to credit enhancement levels that may be low given the projected losses on the underlying pools, Moody's said. The deals are backed primarily by first-lien adjustable- and fixed-rate subprime mortgage loans originated by Long Beach.