Oakwood MH Classes Downgraded

Twenty-four classes from six Oakwood Homes Corp. manufactured housing transactions have been downgraded by Fitch Ratings.Fitch also affirmed the ratings on 36 classes from 19 MH deals. "The rating actions reflect the continued poor performance of the collateral and the increased rate of credit enhancement deterioration due to adjustments in servicing practices," the rating agency said. Fitch said it expects the collateral performance to improve modestly, but that most bonds will not be able to re-establish the credit enhancement, which deteriorated as a result of the high loss rate in recent months. Oakwood Homes Corp., which was engaged in the production, sale, and financing of manufactured homes, filed for Chapter 11 bankruptcy protection in November 2002, and the company's operations and noncash assets were acquired by Clayton Homes Inc. in April 2004, Fitch said. Clayton Homes is a subsidiary of Berkshire Hathaway Inc. The loans continue to be serviced under Clayton management at the servicing center in Greensboro, N.C.