UCFC MH Classes Downgraded

Sixteen classes of selected manufactured housing securitizations of United Companies Financial Corp. have been downgraded by Moody's Investors Service.The downgrades of UCFC Funding Corp. securitizations were as follows: series 1996-1, class A-5, from Aa3 to A2, class A-6, from Aa3 to A2, and class M, from B3 to Ca; series 1997-1, class A-4, from Aa3 to A1, and class M, from B3 to Ca; series 1997-2, class M, from Baa1 to B2, and class B-1, from Ca to C; series 1997-3, class A-4, from A1 to Baa2, and class M, from B3 to Ca. In addition, Moody's downgraded the following classes: series 1997-4, class A-4, from A3 to B1, and class M, from B3 to Ca; series 1998-1, class A-3, from A3 to Baa3, and class M, from B3 to Ca; and series 1998-2, class A-3, from A3 to Ba2, class A-4, from A3 to Ba2, and class M-1, from B3 to Ca. Moody's also confirmed the ratings on two classes of UCFC deals. The downgrades were prompted by high cumulative losses that cannot be covered by available excess spread, thus eroding subordination, Moody's said. The rating agency can be found online at http://www.moodys.com.