Nine classes from two Deutsche Financial Capital manufactured housing transactions have been downgraded by Fitch Ratings.The downgrades were as follows: series 1997-I, class M, from A-minus to BBB, and class B-1, from CC to C; and series 1998-I, classes A-2 to A-7, from AA-minus to A, and class M, from BB-minus to B-minus. In addition, the ratings on four classes were affirmed. DFC was a joint venture of Deutsche Financial Services Corp. and Oakwood Acceptance Corp., a subsidiary of Oakwood Homes Corp. Collateral consists of fixed-rate manufactured housing contracts secured by new and used manufactured homes serviced by OAC. Fitch attributed the downgrades to the fact that overcollateralization was fully depleted in both transactions more than two years ago. "As a result, subordinate classes of certificates have been directly absorbing losses generated within the collateral pool and in certain cases have been fully written down," the rating agency said. Oakwood Homes filed for Chapter 11 bankruptcy protection on Nov. 15, 2002, and announced late last year that substantially all of its assets would be acquired by Clayton Homes Inc., a subsidiary of Berkshire Hathaway. Fitch can be found online at http://www.fitchratings.com.

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