Class B-3 of Merit Securities Corp., series 11, has been downgraded from BBB to B by Fitch Ratings.Fitch also affirmed the ratings on four other classes in the deal. The downgrade reflects the poor performance of the collateral pool and higher-than-expected losses, the rating agency said. "A key to the poor performance of the collateral is the high percentage of manufactured housing loans remaining in the pool," Fitch said. "Manufactured housing loans typically experience a higher rate of default and higher loss severities on liquidated loans." The collateral consists of over 77% manufactured housing, 18% single-family detached units, and less than 1% planned unit developments, according to Fitch.

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