Fitch Downgrades 2 and Affirms 21 Classes from 6 Salomon Brothers Mtg. Securities VII, Inc. Issues

Business Wire, August 26, 2005

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

Series 2000-UP1

--Class A1 and A2, PO affirmed at 'AAA';

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

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

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

--Class B-4 downgraded to 'B' from 'BB';

--Class B-5 downgraded to 'C' from 'CC'.

Series 2003-NBC1 Group 1

--Class AV1 affirmed at 'AAA';

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

--Class BV-2 affirmed at 'AAA';

--Class BV-3 affirmed at 'AA';

--Class BV-4 affirmed at 'A';

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

Series 2003-NBC1 Group 2

--Class AV2 affirmed at 'AAA'.

Series 2003-NBC1 Group 3

--Class AV3 affirmed at 'AAA'.

Series 2003-NBC1 Group 4

--Class AV4 affirmed at 'AAA'.

Series 2003-NBC1 Group 5

--Class AF affirmed at 'AAA';

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

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

--Class BF-3 affirmed at 'BBB ';

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

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

The affirmations, affecting $319.82 million of debt, are due to stable collateral performance and moderate growth in credit enhancement (CE). The above deals have pool factors (i.e., current mortgage loans outstanding as a percentage of the initial pool) ranging from 12% to 40%.

The negative rating actions on series 2000-UP1 are the result of poor collateral performance and the deterioration of asset quality beyond original expectations, and affect $2,289,913 of outstanding certificates. The transaction is collateralized by prime 30-year fixed-rate mortgage loans. As of the July 2005 distribution, the current pool balance is $70,348,590 and there are 1,791 mortgage loans remaining. The 90-plus delinquencies represent 11.48% of the mortgage pool, and foreclosures and REO (real estate owned) represent 2.43% and 1.95%, respectively.

The series 2000-UP1 mortgage loans are being serviced by Regions Mortgage, a division of Union Planters Bank, N.A., which is rated 'RPS2-' by Fitch. The National Bank of Commerce is the master servicer for the series 2003-NBC1.

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

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.