Delta Funding MBS Class Downgraded

Class B of Delta Funding Corp.'s series 2000-4 mortgage-backed securities transaction has been downgraded from CCC to CC by Fitch Ratings.Fitch attributed the rating action to higher-than-expected loss levels that have depleted the overcollateralization in the deal to zero and resulted in a writedown of more than $92,000 to class B. "Furthermore, the presence of a 36-month interest-only strip siphons off excess spread that would otherwise be available to cover losses and build [overcollateralization] in the deal," Fitch said.