Moody's Eyes Delta HEL Classes

Two classes of certificates issued by Delta Funding Home Equity Loan Trust have been placed under review for possible downgrade by Moody's Investors Service.The affected classes are: series 1998-2, class B-1A; and series 2000-3, class B. Both transactions are primarily backed by first-lien adjustable- and fixed-rate subprime mortgage loans. The rating actions were attributed to diminishing credit enhancement levels relative to the projected losses on the underlying pools. "The 2000-3 transaction, in particular, has experienced rapid deterioration of overcollateralization in recent months," Moody's said. The rating agency can be found online at http://www.moodys.com.