Conti HEL Classes Downgraded

Five classes of ContiMortgage Corp. home equity loan transactions have been downgraded by Fitch Ratings.The downgrades were as follows: series 1998-2, class B, from BB to B; series 1998-3 group I, class B-I, from B to CCC; series 1998-3 group II, class B-II, from B to CCC; series 1998-4, class B, from B to CCC; and series 1999-3, class B, from B to CCC. In addition, class M-1F of series 1997-2 group I has been placed on Rating Watch Negative, and Fitch affirmed the ratings on 17 other classes from five ContiMortgage deals. The negative rating actions were attributed to the poor performance of the underlying collateral. The rating agency said greater-than-expected losses have "consistently exceeded the amount of available excess interest, resulting in a depletion of overcollateralization." Fitch can be found online at http://www.fitchratings.com.