Fitch Downgrades FMAC Loan Receivables Trust Series 1998-C

Fitch Downgrades FMAC Loan Receivables Trust Series 1998-C

Business Editors

NEW YORK–(BUSINESS WIRE)–March 25, 2004

Fitch Ratings downgrades FMAC Loan Receivables Trust, series 1998-C, as follows:

— Class B to ‘BB’ from ‘BBB’;

— Class C to ‘B’ from ‘BB’;

— Class F to ‘D’ from ‘C’.

In addition, Fitch affirms the following classes:

— Class A-X ‘AA’;

— Class A-1 ‘AA’;

— Class A-2 ‘A’;

— Class A-3 ‘A’;

— Class D ‘CCC’;

— Class E ‘CC’.

Class F has defaulted on principal and interest payments and the notes have been written down to $0 to cover losses from defaulted loans. The downgrades to classes B and C are the result of erosion of credit enhancement from writedowns and losses passed thru to the trust. Fitch is expecting continued deterioration of the pool of loans as evident with the $14.8 million convenience acquisitions loans that have become delinquent in February 2004. In December 2000, $35 million in convenience acquisitions loans went delinquent, with a workout occurring in November 2002 to bring the loans current.

Fitch analysis assumed low recovery expectations from the $8 million Westwind of Oregon loans and the $11.5 million exposure to the East Texas Holdings loans that are currently in default.

At this time, Fitch believes that credit enhancement supporting the senior bonds is adequate for the current ratings. However, as loans continue to be impaired, further action may be needed.

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