Moody's takes action on Longport Funding II, Ltd.

(The following statement was released by the rating agency)

May 19 - Moody's Investors Service announced today that it
has downgraded and left on review for possible downgrade the
ratings on the following notes issued by Longport Funding II,
Ltd.:
Class Description: U.S.$35,000,000 Class A1J Senior Secured
Floating Rate Notes due 2040
Prior Rating: Aaa
Current Rating: Aa2, on review for possible downgrade
Class Description: U.S.$30,000,000 Class A2 Senior Secured
Floating Rate Notes due 2040
Prior Rating: Aa2
Current Rating: A1, on review for possible downgrade
Class Description: U.S.$13,000,000 Class A3 Secured Deferrable
Interest Floating Rate Notes due 2040
Prior Rating: A2
Current Rating: Baa3, on review for possible downgrade
Class Description: U.S.$14,000,000 Class B Secured Deferrable
Interest Floating Rate Notes due 2040
Prior Rating: Baa2
Current Rating: B2, on review for possible downgrade
According to Moody's, the rating actions reflect increased
deterioration in the credit quality of the underlying portfolio.