Long Beach ABS Classes Downgraded

Five classes from three deals issued by Long Beach Mortgage Co. have been downgraded by Moody's Investors Service, and seven classes from three other deals have been placed under review for possible downgrade.The downgrades of Long Beach Mortgage Loan Trust Asset Backed Certificates were as follows: series 2001-4, class M2, from Baa1 to Ba3, and class M3, from Caa1 to Ca; series 2002-1, class II-M1, from Aa2 to A2, and class M2, from A2 to Baa3; and series 2002-2, class M3, from Baa2 to Ba3. Under review for possible downgrade are (from Long Beach deals) classes M-1, M-2, and M-3 of series 2000-1 and classes M2F and M2V of series 2000-LB1, and (from an Asset Backed Securities Corp. deal) classes M-3 and M-4 from series 2002-HE3. The rating actions were taken because the transactions "have taken significant losses, causing gradual erosion of the overcollateralization," the rating agency said. "In addition, the severity of loss on the liquidated loans has begun to increase due, among other factors, to a higher concentration of manufactured housing loans." The transactions are backed primarily by first-lien subprime mortgage loans originated by Long Beach.