UCFC MH Classes Downgraded

Twelve classes of United Companies Financial Corp. manufactured housing securitizations have been downgraded by Fitch Ratings.The downgrades of United Companies Funding Inc. transactions were as follows: series 1996-1, class A-6, from AAA to AA-minus, and class M, from B-minus to C; series 1997-1, class M, from B-minus to C; series 1997-3, class A-4, from AA-plus to BBB, and class M, from CCC to C. In addition, Fitch downgraded the following classes: series 1997-4, class A-4, from AA to A-minus, and class M, from B-minus to C; series 1998-1, class A-3, from AA to AA-minus; series 1998-2, class A-4, from AA-minus to BB, and class M-1, from BB-minus to B; and series 1998-3, class A-1, from A-plus to BB, and class M-1, from BB-minus to B. Fitch also affirmed the ratings on nine classes of UCFC deals. The downgrades were prompted by the poor performance of the collateral, Fitch said. The rating agency noted that UCFC filed for Chapter 11 bankruptcy protection in 2000, and its manufactured housing portfolio, servicing rights, and residual interests were acquired by EMC, a subsidiary of Bear Stearns Cos. Fitch can be found online at http://www.fitchratings.com.