Fitch Affirms 7 & Downgrades 2 of 1 Salomon Brothers Mortgage Securities VII Issue

Business Wire, August 17, 2004

NEW YORK -- Fitch Ratings has taken rating actions on the following Salomon Brothers Mortgage Securities VII, Inc. issue:

Salomon Home Equity Loan Trust asset-backed pass-through certificates, series 2001-1 group 1:

--Class AF-3 affirmed at 'AAA';

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

--Class MF-2 downgraded to 'BBB-' from 'A';

--Class MF-3 is downgraded to 'CC' from 'BB'.

Salomon Home Equity Loan Trust asset-backed pass-through certificates, series 2001-1 group 2:

--Class AV-1 affirmed at 'AAA';

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

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

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

--Class MV-4 affirmed at 'BBB'.

The affirmations of these classes reflect credit enhancement consistent with future loss expectations.

The negative rating actions on the MF-2 and the MF-3 classes are due to the decline in enhancement relative to applicable credit support levels. As of the July 26, 2004 distribution, the overcollateralization for group I was $212,410.72 with a target of $710,203.78.

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