The rating on class B of Delta Funding Home Equity Loan Trust 1999-3 has been lowered from CCC to D by Standard & Poor's Ratings Services.In addition, the ratings on five other classes from the same transaction were affirmed. The downgrade was attributed to a $32,642 principal writedown realized by the class during the June 2005 remittance period. Originally rated BBB-minus, the class was supported by excess spread and overcollateralization, which have been completely exhausted, S&P said. Monthly net realized losses exceeded monthly excess interest cash flow for most of the past 12 months. The collateral consists of 15- to 30-year, fixed- and adjustable-rate, first- and second-lien subprime mortgage loans secured by one- to four-family residential properties. S&P can be found online at http://www.standardandpoors.com.

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