Bombardier MBS Class Defaults

The rating on the B-2 class of Bombardier Capital Mortgage Securitization Corp.'s pass-through certificates series has been lowered from CCC-minus to D (default) by Standard & Poor's Ratings Services.The downgrade "reflects the nonpayment of full and timely interest, as well as the increased likelihood that investors in the class B-2 notes will not receive ultimate repayment of their original principal investments," the rating agency said. Liquidation-loss interest shortfalls were reported for the B-2 class on the October 2003 payment date. S&P said it expects interest shortfalls for the transaction to continue "given the adverse performance trends displayed by the underlying pool of manufactured housing installment sales contracts and mortgage loans...and the location of the B-2 writedown interest at the bottom of the transaction payment priorities (after distributions of senior principal)." S&P can be found online at http://www.standardandpoors.com.