Metro MBS Class Downgraded

Class B-1 of Metropolitan Mortgage & Securities Co.'s series 1999-A securitization has been downgraded from B to CCC by Fitch Ratings and assigned a Distressed Recovery rating of DR2.In addition, two classes in Metro Mortgage's series 1998-B deal have been downgraded as follows: class B-1, from DR1 to DR2, and class B-2, from DR2 to DR6. Fitch also upgraded eight classes and affirmed the ratings on 18 other classes in nine Metro Mortgage deals. The downgrades were attributed to a deterioration in the relationship between credit enhancement and loss expectations. The majority of the mortgage loans were originated or acquired by Metropolitan Mortgage, which filed for Chapter 11 bankruptcy in February 2004. The collateral consists primarily of fixed- and adjustable-rate mortgage loans secured by first liens on residential properties or commercial real estate.