Class B of First Union Home Equity Loan Trust, series 1997-2, has been downgraded from CCC to C by Fitch Ratings.The downgrade was attributed to the poor performance of the collateral, which consists of subprime fixed-rate and balloon mortgages. Insufficient credit enhancement on the certificates has resulted in principal reductions of the bond balance, the rating agency said. The deal has approximately $1.86 million in foreclosures and real estate owned and may sustain future losses, Fitch said. The rating agency can be found online at http://www.fitchratings.com.
Processing Content
