Class M-2 of Origen Financial Inc. manufactured housing contracts, series 2001-A, has been downgraded from CCC to C by Fitch Ratings.Fitch also affirmed the ratings on five other classes in the transaction. The downgrade was attributed to higher-than-expected losses and declining credit enhancement for the subordinate tranches. Overcollateralization was depleted in January 2004, and class B-1 has been absorbing collateral losses and is nearly fully written down, the rating agency said. "Once class B-1 is fully depleted, losses will be applied to class M-2," whose credit enhancement has dropped from 7.75% at closing to only 0.61%, Fitch said.
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