Delta Funding MBS Classes Downgraded

Nine classes from eight Delta Funding Corp. mortgage-backed securities issues have been downgraded by Fitch Ratings and two classes have been placed on Rating Watch Negative.The downgrades were as follows: series 1997-2, class B-3, from B to CCC; series 1997-3 group A, class B-1A, from B-minus to CCC; series 1999-2, class B, from BBB-minus to B; series 1999-3, class B, from BBB-minus to B; series 2000-1, class B, from BBB-minus to BB-minus; series 2000-2, class B, from B-minus to C; series 2000-3, class B, from BBB to BB-minus; and series 2000-4, class M-2, from A to BB, and class B, from CC to C. Class M-2 of series 1997-2 and class B-1A of series 1998-1 group A were placed on Rating Watch Negative. In addition, Fitch affirmed the ratings on 61 classes from 13 Delta Funding transactions. The rating agency attributed the negative rating actions to high delinquencies and a deterioration of credit enhancement. Fitch can be found online at http://www.fitchratings.com.