BoA MH Classes Downgraded

Eight classes from three BankAmerica manufactured housing securitizations have been downgraded by Fitch Ratings, and two were removed from Rating Watch Negative.The downgrades were as follows: series 1995-BA1, class B-1, from BBB to B, and class B-2, from CCC to C; series 1998-1, class M, from AA-minus to BBB (and removed from Rating Watch Negative), class B-1, from BBB to B (and removed from Rating Watch Negative), and class B-2, from B to C; and series 1998-2, class B-1, from B to CCC, and class B-2, from CCC to C. In addition, Fitch affirmed the ratings on five other classes in the transactions and on nine classes in three other BankAmerica manufactured housing deals. The rating agency noted that BankAmerica Housing Services was purchased by Greenpoint Credit in 1998, and that despite Greenpoint's later exit from the MH lending business, the company continues to service its manufactured housing portfolio. "Higher-than-expected losses have caused significant interest shortfalls to various subordinate bonds in all of the transactions," Fitch said. The deals allow interest to accrue on the shortfall amount and to be recovered if there is sufficient available cash flow, but Fitch said classes rated CCC, CC, and C are "unlikely to recover interest due at any point in the future."