Seven classes of ContiMortgage Corp. Home Equity Loan Trust certificates have been downgraded by Fitch Ratings.The downgrades were as follows: class B of Conti 1998-1, from BBB to B; class B of Conti 1998-2, from BBB to BB; class B-I of Conti 1998-3 group I, from BBB-minus to B; class B of Conti 1998-4, from BBB to B; class B of Conti 1999-1, from BB to CCC; and class B of Conti 1999-3, from BB to B. In addition, the ratings on class B-1 of Conti 1998-3 group I, class B of Conti 1999-1, and class B of Conti 1999-3 were removed from Rating Watch Negative. Fitch also affirmed the ratings on 37 ContiMortgage classes. The downgrades were attributed to a decline in credit enhancement relative to applicable credit support. "The spikes in losses are the effect of the recent procedural changes made by the servicer, Fairbanks Capital Corp., to its processes regarding the reconciliation of property values used in its net present value model," Fitch said. The rating agency can be found online at http://www.fitchratings.com.
Conti HEL Classes Downgraded
October 22, 2003, 2:00 p.m. EDT 1 Min Read
