NEW YORK -- Long Beach Securities Corporation's asset-backed certificates, series 2005-1, which closed on Jan. 6, 2005, are rated by Fitch Ratings as follows:

-- $2.807 billion classes I-A1, II-A1, II-A2, II-A3 'AAA';

-- $159.25 million class M-1 'AA+';

-- $99.75 million class M-2 'AA';

-- $61.25 million class M-3 'AA-';

-- $61.25 million class M-4 'A+';

-- $43.75 million class M-5 'A';

-- $42 million class M-6 'A-';

-- $35 million class M-7 'BBB+';

-- $35 million class M-8 'BBB';

-- $35 million class M-9 'BBB-',

-- $35 million class B-1 'BB+'

-- $24.50 million class B-2 'not rated'.

The 'AAA' rating on the senior certificates reflects the 19.80% credit enhancement provided by the 4.55% class M-1, 2.85% class M-2, 1.75% class M-3, 1.75% class M-4, 1.25% class M-5, 1.20% class M-6, 1% class M-7, 1% class M-8, 1% class M-9, 1% class B-1 and 0.70% unrated class B-2, as well as 1.75% over-collateralization (OC). Additionally, all classes have the benefit of monthly excess cash flow to absorb losses. The ratings also reflect the quality of the mortgage collateral, strength of the legal and financial structures, and Long Beach Mortgage Company's servicing capabilities as master servicer.

Group I consists of first lien, fixed-rate (8.87%) and adjustable-rate mortgage loans (91.13%), with principal balances that conform to Fannie Mae and Freddie Mac guidelines. Approximately 17.60% of the loans are interest only for the initial two, three or five years following origination. The Group I mortgage loans had a cut-off date pool balance of $2,384,632,512.69. As of the cut-off date, Group I loans had a weighted average original loan-to-value ratio (OLTV) of 80.84%. Cash-out refinance loans accounted for approximately 39.11% of the Group I loans, condominiums accounted for approximately 7.61%, and second homes accounted for approximately 0.78%. The weighted average coupon (WAC) for the Group I loans was 7.181%. The average loan balance was $158,923 and the weighted average FICO score for the Group I Loans was 630. The states that represent the largest portion of the Group I mortgage loans were California (31.55%), Illinois (7.54%), Florida (7.08%) and Texas (6.28%).