Class B of First Union Home Equity Loan mortgage pass-through certificates, series 1997-3, has been downgraded from B to CCC by Fitch Ratings and assigned a Distressed Recovery rating of DR2.Fitch said the downgrade reflects the deterioration of credit enhancement relative to expected losses, largely as a result of liquidations that have reduced the amount of overcollateralization supporting the transaction. The collateral consists of mixed fixed-rate and balloon mortgages extended to subprime borrowers.
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