GE Home Equity Classes Downgraded

Two classes of the GE Home Equity 1997-HE 3 transaction have been downgraded by Fitch Ratings.The downgrades were as follows: class B-1, from BBB-minus to BB-minus; and class B-2, from CC to C. In addition, the ratings on two classes in the deal were affirmed, and another remains on Rating Watch Negative. Fitch said credit support for class B-2 has been depleted due to losses, and the bond took a principal writedown on Aug. 25. "Although the transaction's structure allows for the writedown amount to be repaid from future recoveries, the structure does not allow for interest on the written-down amount to be repaid," the rating agency said. The downgrade of class B-1 was attributed to loss levels and high delinquencies in relation to applicable credit support. Fitch can be found online at http://www.fitchratings.com.