Bear Stearns Classes Downgraded

Three classes of Bear Stearns asset-backed securities series 1999-2, groups 1 and 2, have been downgraded by Fitch Ratings.The downgrades were as follows: group 1, class MF-2, from A to BBB, and class BF, from BBB-minus to B and removed from Rating Watch Negative; and group 2, class BV, from BBB-minus to BB. In addition, the ratings on seven classes in the securitization have been affirmed. Fitch attributed the downgrades to "the worse-than-expected performance of the underlying collateral in these deals and its potential negative impact on the most subordinate classes of debt." The underlying trust is backed by two collateral loan groups: group 1 (fixed-rate) and group 2 (adjustable-rate) originated by Conseco Finance Corp. (69.17%) and Amresco Residential Mortgage Corp. (20.92%). The group 1 and group 2 mortgage pools are not cross-collateralized, but there is limited cross-collateralization in the form of excess spread, Fitch said.