OMI MH Classes Downgraded

The ratings on the B-1 classes of three OMI Trust manufactured housing transactions have been lowered by Standard & Poor's Ratings Services.The downgrades were as follows: OMI Trust 1999-C, class B-1, from CCC to CC; OMI Trust 1999-D, class B-1, from CCC to CC; and OMI Trust 2001-C, class B-1, from CCC-minus to CC. S&P said the downgrades "reflect the unlikelihood that investors will receive timely interest and the ultimate repayment of their original principal investment." The rating agency said high losses in the past year have reduced the deals' overcollateralization ratios to zero, causing writedowns on the B-1 classes of OMI Trust 1999-C and OMI Trust 2001-C and threatening a writedown in OMI Trust 1999-D next month. The deals are backed by manufactured housing retail installment contracts originated by Oakwood Homes Corp. Oakwood announced in November 2002 that it was filing for Chapter 11 bankruptcy protection.