Fitch Downgrades UCFC MH Classes

Three classes of United Companies Financial Corp. manufactured housing transactions have been downgraded by Fitch Ratings.The downgrades were as follows: series 1998-2, class M-1, from B to B-minus, and class M-2, from B-minus to C; and series 1998-3, class M-2, from B-minus to CCC. Fitch also affirmed the ratings on six classes in three UCFC manufactured housing deals. The downgrades were attributed to the poor performance of the collateral. The loans were originated by United Companies Funding Inc., which was formed in 1995 as a wholly owned manufactured housing lending subsidiary of UCFC. In 1998, UCFI announced plans to close down its manufactured housing business. In 1999, UCFC filed for Chapter 11 bankruptcy protection, and in December 2000, the MH portfolio, servicing rights, and residual interests were acquired by EMC, a wholly owned subsidiary of Bear Stearns Cos. Fitch can be found online at http://www.fitchratings.com.