Fitch has taken rating actions on the following Salomon Brothers Mortgage Securities (SBMS) VII, Inc., mortgage pass-through certificates:

Salomon Brothers Mortgage Securities VII, Inc., mortgage pass-through certificates, series 1993-4

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

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

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

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

-- Class B-4 upgraded to 'AA-' from 'A';

-- Class B-5 upgraded to 'BBB+' from 'BBB'.

Salomon Brothers Mortgage Securities VII, Inc., mortgage pass-through certificates, series 1993-5

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

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

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

-- Class B-4 upgraded to 'AA' from 'A';

-- Class B-5 affirmed at 'BBB+'.

Salomon Brothers Mortgage Securities VII, Inc., mortgage pass-through certificates, series 1993-6A

-- Class 6A-B1 affirmed at 'AAA';

-- Class 6A-B2 upgraded to 'AAA' from 'AA'.

Salomon Brothers Mortgage Securities VII, Inc., mortgage pass-through certificates, series 1994-3

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

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

-- Class B-3 upgraded to 'AAA' from 'A-';

-- Class B-4 upgraded to 'AAA' from 'BB+'.

Salomon Brothers Mortgage Securities VII, Inc., mortgage pass-through certificates, series 1994-4A

-- Class A4-A affirmed at 'AAA';

-- Class A4-B1 affirmed at 'AAA';

-- Class A4-B2 upgraded to 'AAA' from 'AA';

-- Class A4-B3 upgraded to 'AA-' from 'B-'.

Salomon Brothers Mortgage Securities VII, Inc., mortgage pass-through certificates, series 1994-9

-- Class A affirmed at 'AAA';

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

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

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

-- Class B-4 upgraded to 'AA+' from 'AA';

-- Class B-5 upgraded to 'A+' from 'A'.

Salomon Brothers Mortgage Securities VII, Inc., mortgage pass-through certificates, series 1996-2

-- Class A affirmed at 'AAA';

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

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

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

-- Class B-4 upgraded to 'AAA' from 'A+';

-- Class B-5 upgraded to 'AAA' from 'BBB+'.

Salomon Brothers Mortgage Securities VII, Inc., mortgage pass-through certificates, series 1997-HUD1

-- Class A affirmed at 'AAA';

-- Class B-1 upgraded to 'AAA' from 'AA';

-- Class B-2 upgraded to 'A+' from 'A';

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

-- Class B-4 downgraded to 'CC' from 'CCC'.

Salomon Brothers Mortgage Securities VII, Inc., mortgage pass-through certificates, series 1997-HUD2

-- Class A affirmed at 'AAA';

-- Class B-1 upgraded to 'AA+' from 'AA';

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

-- Class B-3 affirmed at 'BB'.

Salomon Brothers Mortgage Securities VII, Inc., mortgage pass-through certificates, series 1999-2 Group 1

-- Class A1 affirmed at 'AAA';

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

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

-- Class B-3 upgraded to 'AAA' from 'AA+';

-- Class B-4 upgraded to 'AA' from 'A+';

-- Class B-5 upgraded to 'A' from 'BBB'.

Salomon Brothers Mortgage Securities VII, Inc., mortgage pass-through certificates, series 1999-2 Group 2

-- Class A2 affirmed at 'AAA'.

Salomon Brothers Mortgage Securities VII, Inc., mortgage pass-through certificates, series 2000-BofA1

-- Class A affirmed at 'AAA';

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

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

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

-- Class B-4 affirmed at 'AAA';

-- Class B-5 affirmed at 'A+'.

Salomon Brothers Mortgage Securities VII, Inc., mortgage pass-through certificates, series 2003-NBC1 Group 1

-- Class AV1 affirmed at 'AAA';

-- Class BV-1 upgraded to 'AAA' from 'AA';

-- Class BV-2 upgraded to 'AAA' from 'A';

-- Class BV-3 upgraded to 'AA' from 'BBB';

-- Class BV-4 upgraded to 'A' from 'BB';

-- Class BV-5 upgraded to 'B+' from 'B'.

Salomon Brothers Mortgage Securities VII, Inc., mortgage pass-through certificates, series 2003-NBC1 Group 2

-- Class AV2 affirmed at 'AAA'.

Salomon Brothers Mortgage Securities VII, Inc., mortgage pass-through certificates, series 2003-NBC1 Group 3

-- Class AV3 affirmed at 'AAA'.

Salomon Brothers Mortgage Securities VII, Inc., mortgage pass-through certificates, series 2003-NBC1 Group 4

-- Class AV4 affirmed at 'AAA'.

Salomon Brothers Mortgage Securities VII, Inc., mortgage pass-through certificates, series 2003-NBC1 Group 5

-- Class AF affirmed at 'AAA';

-- Class BF-1 upgraded to 'AAA' from 'AA';

-- Class BF-2 upgraded to 'AA' from 'A';

-- Class BF-3 upgraded to 'BBB+' from 'BBB';

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

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

The upgrades, affecting $87,894,715 of outstanding certificates, are being taken as a result of low delinquencies and losses, as well as significantly increased credit support levels. The affirmations, affecting over $354,181,273 of certificates, are due to stable collateral performance and moderate growth in credit enhancement (CE). The pools are seasoned from a range of 19 to 134 months. The pool factors (current principal balance as a percentage of original) range from approximately .01% to 44% outstanding.

The negative rating action on series 1997-HUD1, class B-4 affects $7,365,780 of total certificates, and reflects the decreased credit enhancement available to offset the potential losses from the increasing delinquency pipeline. As of the October 2004 distribution, there are 1,435 mortgage loans remaining, nearly 19% (271) of which are non-performing. The 90+ delinquencies represent 12.62% of the mortgage pool, and foreclosures and real estate owned (REO) represent 2.66% and 0.85%, respectively. The transaction is collateralized by 20-30 year fixed-rate seasoned mortgage loans. Substantially all of the mortgage loans have defaulted in the past and are reperforming mortgage loans. The mortgage loans were acquired from the United States Department of Housing and Urban Development (HUD). The goal of HUD was to make mortgage credit readily available to American home buyers, particularly those with low or moderate income.

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