CIT HEL Classes Downgraded

Two classes of CIT Home Equity Loan Trust series 1998-1 have been downgraded by Moody's Investors Service.Class B-2 was downgraded from Ba2 to Ba3, and class B-3 was downgraded from B2 to C. Moody's attributed the downgrades to weaker-than-expected performance of the underlying collateral. "The class B-3 certificates have taken writedowns, and future losses based on pipeline delinquencies are expected to further erode this class," the rating agency said. Moody's said the structure of the deal "differs significantly" from that of other senior/subordinate pass-through home equity deals in that "excess spread is not captured to cover losses; the subordinate certificates provide the only form of credit support for the senior certificates." Moody's can be found online at http://www.moodys.com.