UCFC MH Bonds Downgraded

Eleven classes of securities in United Companies Financial Corp.'s manufactured housing deals have been downgraded by Fitch, and eight classes have been moved to Rating Watch Negative from Rating Watch Evolving. The rating agency noted that UCFC, which filed for Chapter 11 bankruptcy protection in March 1999, recently announced that it would sell its home equity whole loan portfolio, residual interests, and servicing rights to EMC Mortgage Corp. But Fitch said it is unaware of any plan to transfer the servicing of the eight securitized MH pools, which "have displayed a relatively high level of delinquencies and repossessions." The MH downgrades were: Class B-1 of Series 1996-1, from BBB to BB-minus, and Class B-2, from B to CCC; Class A of Series 1997-RS1, from BB-minus to B; Class B-1 of Series 1997-1, from BB to B, and Class B-2, from CCC to D; Class B-1 of Series 1997-2, from BBB to BB, and Class B-2, from CCC to D; Class B-1 of Series 1997-3, from BBB to BB, and Class B-2 from CCC to D; Class B-1 of Series 1997-4, from BBB to BB; Class B-1 of Series 1998-1, from BBB to BB; and Class B-2 of Series 1998-2, from BB to B. Except for Class B-1 of Series 1996-1 and the B-2 classes of Series 1997-1, 1997-2, and 1997-3, the above securities remain on Rating Watch Negative.