30 Oakwood MH Classes Downgraded

Thirty classes in 10 Oakwood Homes manufactured housing transactions have been downgraded by Fitch Ratings.Fitch also affirmed the ratings on 33 other classes in the deals. The rating agency attributed the downgrades to the "continued poor performance" of the underlying collateral. Oakwood Homes, a major manufacturer and lender in the manufactured housing industry, filed for Chapter 11 bankruptcy protection on Nov. 15, 2002. Fitch said Oakwood received approval from the bankruptcy court to continue servicing its portfolio. "The servicing fee has been moved to a senior position in the waterfall in accordance with the pooling and servicing agreement," the rating agency said. "Additionally, Oakwood was able to secure continued access to a $200 million loan purchase facility and $215 million in debtor-in-possession facilities, which have provided liquidity during the bankruptcy proceedings." After the bankruptcy filing, loss severities on liquidations "increased dramatically," Fitch said. The rating agency can be found online at http://www.fitchratings.com.