Fitch Affirms 1 & Downgrades 1 RMBS Class from ABFS 2003-2

Business Wire, Dec 7, 2007

NEW YORK -- Fitch Ratings has taken the following rating actions on American Business Financial Services (ABFS) mortgage pass-through certificates:

Series 2003-2

--Class A affirmed at 'AAA';

--Class M downgraded from 'AA' to 'A ' and removed from Rating Watch Negative.

The affirmation affects approximately $13.6 million of the outstanding certificates and the downgrade affects approximately $15.8 million of the outstanding certificates. Class A is affirmed based on the strength of the Ambac Assurance Corp. guarantee of timely interest and ultimate principal (Fitch Insurer Financial Strength [IFS] rating of 'AAA').

The rating on class M is based on a guarantee of timely interest and ultimate principal by Radian Asset Assurance, Inc. Fitch downgraded Radian Asset Assurance, Inc.'s IFS rating to 'A ' on Sept. 5, 2007 (for details see the press release titled 'Fitch Downgrades Radian's L-T Debt to 'A-', IFS to 'AA-' on Recessed Merger' on www.fitchratings.com) and, as a result, class M is downgraded.

The collateral of the above transaction generally consists of fixed-rate, consumer and business purpose home equity loans secured by first and second liens on residential properties. The loans were originated by American Business Credit, Inc., HomeAmerican Credit Inc., and American Business Mortgage Services, Inc. The loans are serviced by EMC Mortgage Corp., which is rated 'RPS1' by Fitch.

As of the November 2007 distribution date, series 2003-2 has a pool factor (current mortgage loan principal outstanding as a percentage of the initial pool) of 21% and is seasoned 49 months. 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.