Fitch Upgrades 3 and Affirms 19 from 4 Bear Stearns ARM Trust Issues

Business Wire, April 8, 2005

NEW YORK -- Fitch Ratings has taken rating actions on the following Bear Stearns ARM Trust Issues:

Series 2000-2

-- Class A affirmed at 'AAA';

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

-- Class B-2 affirmed at 'AA ';

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

-- Class B-4 affirmed at 'BBB ';

-- Class B-5 affirmed at 'BB '.

Series 2001-4

-- Class A affirmed at 'AAA';

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

-- Class B-2 affirmed at 'AA';

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

-- Class B-4 remains at 'CCC';

-- Class B-5 remains at 'D'.

Series 2001-7

-- Class A affirmed at 'AAA';

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

-- Class B-2 affirmed at 'AA ';

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

-- Class B-4 affirmed at 'BB ';

-- Class B-5 affirmed at 'B '.

Series 2002-9

-- Class A affirmed at 'AAA';

-- Class B-1 upgraded to 'AAA' from 'AA';

-- Class B-2 upgraded to 'AA-' from 'A';

-- Class B-3 upgraded to 'BBB ' from 'BBB';

The affirmations, affecting approximately $216 million of outstanding certificates, reflect asset performance and credit enhancement (CE) levels generally consistent with expectations. The upgrades, affecting approximately $10 million of outstanding certificates, are due to strong collateral performance and high levels of CE relative to future loss expectations.

The current CE for all classes from series 2000-2 is at least 2 times (x) original levels. As of the March distribution date, 80% of the collateral has paid down, there are no loans that are severely delinquent, and cumulative losses are zero. The collateral consists of fully amortizing COFI adjustable-rate, first lien, one- to four-family residential mortgage loans.

Currently the CE for classes A, B-1, B-2, and B-3 from series 2001-4 is more than 3x the original levels. While there is $477,510 in cumulative losses, there have been no losses in over a year, there are no loans currently in 90 delinquency, and 85% of the collateral has paid down. The mortgage pool consists of conventional 30-year, fully amortizing, adjustable-rate mortgage loans secured by first liens on one- to four-family residential properties.

As of the March distribution date, the CE for classes A, B-1, B-2, B-3, B-4, and B-5 from series 2001-7 has at least doubled since origination. There is currently one loan in 90 delinquency, one loan in foreclosure, and one loan in bankruptcy. However, the balance of these loans is only 0.89% of the current pool balance and there is almost $800,000 in the non-rated B-6 piece to absorb any losses that may result from these loans. Furthermore, there have been no losses incurred since origination with 75% of the collateral paying down. The collateral consists of traditional and hybrid adjustable-rate mortgages extended to prime borrowers.

The CE for classes A, B-1, B-2, and B-3 from series 2002-9 has increased from its original levels. The CE for classes A, B-1, B-2, and B-3 is more than 3x the original levels. While there have been some recent losses in the deal, totaling $230,441, and there is currently one loan in REO and one loan in bankruptcy, Fitch believes that there is enough in the non-rated B-6 bond to absorb any future losses. As of the March distribution, 85% of the collateral has paid down. The mortgage pool consists of adjustable-rate mortgage loans consisting of one-, three-, five-, seven-, and 10-year hybrid ARMs, secured by first liens on one- to four-family residential properties.

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