Two classes of IndyMac ABS Inc. home equity issues have been downgraded by Fitch Ratings and a third has been placed on Rating Watch Negative.The downgrades were as follows: series SPMD 2000-B group 1, class MF2, from BBB-minus to B; and series SPMD 2000-B group 1, class BF, from B-minus to CC. Class BF of series SPMD 2001-B was placed on Rating Watch Negative. In addition, class MF1 of series SPMD 2000-B group 1 was removed from Rating Watch Negative, and the ratings on 20 classes in the two deals (plus a third) were affirmed, Fitch said. The rating agency attributed the downgrades to "adverse collateral performance and the deterioration of asset quality outside of Fitch's original expectations." Fitch said the percentage of manufactured housing collateral in IndyMac SPMD 2000-B group 1 had more than doubled (to 27.7%) as of September 2003, and that "MH loans have exhibited very high historical loss severities, causing Fitch to have concerns over the available enhancement in this deal." The transaction includes mortgage insurance policies from both the lender and the borrower on about 40% of the mortgage pool, but Fitch said illiquidity in the market has slowed down the resolution of insurance claims and the liquidation of MH collateral in such deals. Fitch can be found online at http://www.fitchratings.com.
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May 10