Fitch Affirms 37 and Downgrades 9 classes from 16 Salomon Brothers Subprime Transactions

Business Wire, June 6, 2008

NEW YORK -- Fitch Ratings has taken the following rating actions on Salomon Brothers mortgage pass-through certificates. Unless stated otherwise, any bonds that were previously placed on Rating Watch Negative are removed. Additionally, 1 class was placed on Rating Watch Negative.

SBMSI 1997-NC5

--M-1 affirmed at 'AAA';

Deal Summary

--60 day Delinquency: 19.84%

--Realized Losses to date (% of Original Balance): 3.93%

SBMSI 1998-NC1

--A affirmed at 'AAA';

--M1 affirmed at 'AA ';

Deal Summary

--60 day Delinquency: 28.52%

--Realized Losses to date (% of Original Balance): 4.92%

SBMSI 1998-NC2

--M1 affirmed at 'AA ';

Deal Summary

--60 day Delinquency: 24.66%

--Realized Losses to date (% of Original Balance): 3.40%

SBMSI 1998-NC3

--A-5 affirmed at 'AAA';

--A-6 affirmed at 'AAA';

--M-1 affirmed at 'AA ';

--M-2 affirmed at 'A';

--M-3 affirmed at 'BB ';

Deal Summary

--60 day Delinquency: 17.31%

--Realized Losses to date (% of Original Balance): 4.77%

SBMSI 1998-NC4

--M-2 affirmed at 'A';

--M-3 affirmed at 'BBB';

Deal Summary

--60 day Delinquency: 46.82%

--Realized Losses to date (% of Original Balance): 5.28%

SBMSI 1998-NC6

--A affirmed at 'AAA';

--M-1 affirmed at 'AA';

--M-2 affirmed at 'A';

--M-3 affirmed at 'BBB';

Deal Summary

--60 day Delinquency: 18.92%

--Realized Losses to date (% of Original Balance): 6.53%

SBMSI 2001-NC1

--M-2 affirmed at 'AA-';

--M-3 downgraded to 'BB' from 'BBB';

Deal Summary

--60 day Delinquency: 40.89%

--Realized Losses to date (% of Original Balance): 2.49%

SBMSI 2001-NC2

--P affirmed at 'AAA';

--M-2 affirmed at 'AA';

--M-3 downgraded to 'BB' from 'BBB';

Deal Summary

--60 day Delinquency: 34.20%

--Realized Losses to date (% of Original Balance): 2.73%

SBMSI 1997-LB4

--M3 affirmed at 'AA';

Deal Summary

--60 day Delinquency: 20.87%

--Realized Losses to date (% of Original Balance): 2.31%

SBMSI 1997-LB6

--A-5 affirmed at 'AAA';

--A-6 affirmed at 'AAA';

--XS affirmed at 'AAA';

--B1 affirmed at 'AAA';

--B2 rated 'A', placed on Rating Watch Negative;

Deal Summary

--60 day Delinquency: 14.94%

--Realized Losses to date (% of Original Balance): 3.16%

SBMSI 1998-AQ1

--A-5 affirmed at 'AAA';

--A-6 affirmed at 'AAA';

--A-7 affirmed at 'AAA';

--B1 downgraded to 'BB ' from 'AA';

Deal Summary

--60 day Delinquency: 15.44%

--Realized Losses to date (% of Original Balance): 3.88%

SBMSI 1998-OPT1

--M-1 affirmed at 'AA ';

Deal Summary

--60 day Delinquency: 32.60%

--Realized Losses to date (% of Original Balance): 3.95%

SBMSI 2001-1 Group 1

--AF3 affirmed at 'AAA';

--MF1 affirmed at 'A';

--MF2 downgraded to 'CCC/DR2' from 'B-/DR1';

--MF3 downgraded to 'C/DR6' from 'CC/DR2';

Deal Summary

--60 day Delinquency: 17.69%

--Realized Losses to date (% of Original Balance): 6.84%

SBMSI 2001-1 Group 2

--MV2 affirmed at 'AA';

--MV3 affirmed at 'A-';

--MV4 downgraded to 'B-/DR1' from 'BB';

Deal Summary

--60 day Delinquency: 14.05%

--Realized Losses to date (% of Original Balance): 8.20%

SBMSI 2002-CIT1

--A affirmed at 'AAA';

--M-1 affirmed at 'AA';

--M-2 affirmed at 'BBB ';

--M-3 affirmed at 'BB ';

--M-4 affirmed at 'B-/DR1';

--M-5 downgraded to 'C/DR5' from 'B-/DR2';

Deal Summary

--60 day Delinquency: 19.78%

--Realized Losses to date (% of Original Balance): 3.28%

SBMSI Series 2002-WMC2

--M-1 downgraded to 'BB ' from 'AA';

--M-2 affirmed at 'B';

--M-3 downgraded to 'C/DR6' from 'B';

Deal Summary

--60 day Delinquency: 35.10%

--Realized Losses to date (% of Original Balance): 2.49%

Additional details are available in the following research, available at www.fitchratings.com:

--'Downgrade Criteria for Recent Vintage U.S. Subprime RMBS' (Aug. 8, 2007);

All of Fitch's ratings criteria for US subprime RMBS available at www.fitchratings.com/subprime. For a list of deals currently under analysis please visit www.fitchratings.com/smartview.> Further information regarding current delinquency, loss, and credit enhancement statistics is also available 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.