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NEW YORK CITY-The ratings of various classes of Bombardier Capital Mortgage Securitization Corp.’s senior/subordinated pass-through certificates series 1998-C and 1999-A have been affirmed by Standard & Poor’s, which has removed them from CreditWatch with negative implications. They were placed on CreditWatch on Oct. 24 due to the performance of the underlying pools and high projected cumulative net losses for both manufactured housing transactions.

Series 1998-C had displayed a cumulative net loss rate of 2.15% of the original pool balance after 22 months, and series 1999-A turned in loss of 1.52%. In addition, both suffered from insufficient monthly excess spread, causing over-collateralization to slip further below the target level of 4.75%.

To support the original ratings, at Bombardier’s request, letters of credit have been issued by Societe Generale SA for more than $16.6 million for the 1998-C deal and over $11.3 million for 1999-A. S&P believes this credit enhancement structure will allow the bonds to pay both principal and interest.

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