Long Beach B&C Classes Downgraded

Five classes of the Long Beach Mortgage Loan Trust series 2002-1 subprime mortgage deal have been downgraded by Fitch Ratings.The downgrades were as follows: group 1, class I-M2, from BBB to BB, and class I-M3, from CCC/DR2 to C/DR4; and group 2, class II-M1, from A-plus to BBB-plus, class II-M2, from BBB to BB, and class II-M3, from CCC/DR2 to C/DR4. In addition, the rating on one class in group 1 was affirmed. The downgrades stem from the fact that the transaction is experiencing monthly losses that exceed the available excess spread, causing "substantial deterioration" of the overcollateralization, the rating agency said. The performance of the deal has also been hurt by a growing concentration of loans secured by manufactured homes, Fitch said. Fitch can be found online at http://www.fitchratings.com.