IndyMac MH Classes Downgraded

Four classes of IndyMac Manufactured Housing Contract pass-through certificates have been downgraded by Fitch Ratings.The downgrades were as follows: series 1997-1, class M, from BBB to B; series 1998-1, class M, from BBB to B; series 1998-2, class M-1, from BBB-minus to B, and class M-2, from BB-minus to CCC. In addition, the ratings on 14 other classes from the three deals were affirmed. The rating agency noted that IndyMac exited the manufactured housing lending business in mid-1999 but continues to operate its mortgage loan servicing operation in Pasadena, Calif. Fitch attributed the downgrades to poor performance of the underlying manufactured housing loans, whose higher-than-expected losses have led to "the complete depletion of overcollateralization on all three transactions." Fitch can be found online at http://www.fitchratings.com.