Wisconsin Ave REMIC Classes Downgraded

Three classes from Wisconsin Avenue Securities Mezzanine REMIC Pass-Through Certificates Fannie Mae REMIC Trust 1998-W3 have been downgraded by Fitch Ratings. The downgrades were as follows: class B1, from AA-minus to A-minus; class B2, from A-minus to B; and class B3, from BB to C/DR4. Fitch also affirmed the ratings on nine classes from three other Wisconsin Avenue securities transactions. The downgrades were attributed to the relationship between credit enhancement and loss expectations. The rating agency said Fannie Mae has "no exposure" to any of the affected tranches, adding that it believes the asset quality of Fannie's portfolio "remains unaffected" by the rating actions. Fitch can be found on the Web at http://www.fitchratings.com.