Oakwood MH Classes Downgraded

Twelve classes of Oakwood manufactured housing Transactions have been downgraded from CCC to C by Fitch Ratings.The downgrades were as follows: the B-2 classes of series 1996-A, 1996-B, and 1996-C, and the B-2 limited-guarantee classes of series 1997-A, 1997-B, 1997-C, 1997-D, 1998-B, 1998-C, 1999-A, 1999-B, and 1999-C. Fitch said Oakwood Homes did not make guarantee payments to the bonds after its Chapter 11 bankruptcy filing Nov. 15. Moreover, servicing of its manufactured housing portfolio was transferred to Oakwood Servicing Holdings Co., a newly created limited-purpose subsidiary of Oakwood Acceptance Corp. With that transfer, all servicing fees -- some of which had previously been subordinated to the bonds -- will now be paid first, reducing the available cash payable to the deals, Fitch said. If losses are greater than the excess spread, the B-2 classes will incur a principal writedown. The rating agency can be found on the Web at http://www.fitchratings.com.