Delta MBS Classes Downgraded

Five classes from three Delta Funding Corp. home equity issues have been downgraded by Fitch Ratings and four classes from two other issues have been placed on Rating Watch Negative.The downgrades were as follows: Delta 1999-2, class M2, from A to BBB-plus, and class B, from CC to C; Delta 1999-3, class M1, from AA to A-plus, and class M2, from BBB to BBB-minus; and Delta 2000-3, class M-2, from A-minus to BBB. Classes M2 and B of Renaissance HELT 2002-1 and classes M2 and B of Renaissance HELT 2002-3 were placed on Rating Watch Negative. In addition, Fitch upgraded seven classes and affirmed the ratings on 68 classes from 20 Delta Funding transactions. The negative rating actions stemmed from a deterioration of credit enhancement relative to monthly losses, which have exceeded excess spread for at least nine of the past 12 months, the rating agency said. Fitch can be found online at http://www.fitchratings.com.