Twenty-five classes from six Bombardier Capital Manufactured Housing Contracts deals have been downgraded by Fitch Ratings.The affected deals are series 1998-A, series 1998-B, series 1998-C, series 1999-B, series 2000-A, and series 2001-A. Fitch also affirmed the ratings on 11 classes. The rating agency noted that Bombardier exited the manufactured housing lending business in September 2001 but continues to service its MH loan portfolio. "The departure from the lending business has had an adverse impact on already deteriorating performance," Fitch said. "As a result of exiting the MH lending business, Bombardier is now heavily reliant upon wholesale liquidations of repossessed homes. Recovery rates on wholesale liquidations are generally substantially lower than retail liquidation recoveries."
25 Bombardier MH Classes Downgraded
Published July 16, 2003, 2:00 p.m. EDT
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