Long Beach RMBS Classes Downgraded

Four classes of Long Beach residential mortgage-backed securities, series 2002-5, have been downgraded by Fitch Ratings.The downgrades were as follows: class M-2, from A to A-minus; class M-3, from BB-plus to B-plus; and classes M-4A and M-4B, from BB-minus to C. The last two classes were also assigned a Distressed Recovery rating of DR5. In addition, Fitch affirmed the rating on one other class in the deal. The downgrades were attributed to "continued deterioration" in the relationship between credit enhancement and loss expectations. The rating agency said it expects the overcollateralization to be depleted within 12 months. Fitch can be found on the Web at http://www.fitchratings.com.