Moody's Eyes IMC Classes

Eight classes of certificates issued by four IMC Home Equity Loan Trusts have been placed under review for possible downgrade by Moody's Investors Service.The affected securities are the M-2 and B classes of the following series: 1997-3, 1997-5, 1998-1, and 1998-5. Moody's said the securities are backed primarily by fixed-rate, first-lien subprime mortgage loans originated by the Industry Mortgage Co. All four transactions have taken significant losses, and the securities were placed under review because their credit enhancement levels may not be consistent with their current ratings, given the weak performance of the collateral, the rating agency said. "Specifically, the most subordinate class B certificates in the 1997-3 and 1997-5 series have already experienced substantial writedowns," Moody's said. Fairbanks Capital Corp is the primary servicer of the loans in all four transactions. Moody's can be found online at http://www.moodys.com.