Cityscape HEL Classes Downgraded

Four classes of Cityscape Home Equity Loan Trust home equity loan pass-through certificates have been downgraded by Fitch Ratings.The downgrades were as follows: Cityscape 1997-B group I, class M-2F, from A to BBB, and class B-1F, from BBB to BB; Cityscape 1997-B group II, class B-1A, from BBB to C; and Cityscape 1997-C group I, class B-1F, from CCC to C. Fitch also affirmed the ratings on nine classes in the two securitizations. The downgrades to series 1997-B were attributed to "elevated levels of losses and a forecast of continued poor collateral performance," the rating agency said. The overcollateralization is below target, and over 60% of both pools are more than 60 days delinquent, Fitch said. In addition, losses have resulted in a reduction in the principal balance of class B-1A. In series 1997-C, the OC of the fixed-rate portion is below target, more than 30% of the loans are more than 60 days delinquent, and class B-1F has taken a principal writedown, Fitch said. The rating agency can be found online at http://www.fitchratings.com.