In the wake of LTV Steel headlines, where bankruptcy remoteness is being challenged (see ASR 2/26/01, p.3), news and substantial ratings actions surfaced last week concerning the Heilig-Meyers master trusts, which could be as detrimental to investor confidence as LTV.

Both Moody's Investors Service and Fitch dropped ratings on numerous classes from the series 1998-1 and series 1998-2 of Heilig-Meyers' Master Trust. Most notably, Moody's dropped the class A's from both series to B3' from Aaa,' while Fitch dropped the same classes to BB' from AAA.

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