Bombardier Capital Mtg $409.4M Ctfs Rated By Fitch IBCA.

NEW YORK--(BUSINESS WIRE)--Sept. 2, 1999--

Bombardier Capital Mortgage Securitization Corp.'s $350.9 million pass-through certificates, series 1999-B, class A-1-A through A-6, are rated 'AAA' by Fitch IBCA. In addition, $35.1 million class M-1 certificates are rated `AA' and $23.4 million class M-2 certificates are rated `A'. The B-1 and B-2 certificates are not being offered at this time. The ratings are based on the quality of the manufactured housing contracts, the respective levels of credit enhancement, the integrity of the legal and financial structure and the servicing capabilities of Bombardier Capital, Inc. (BCI).

Credit enhancement for the senior certificates is provided by the 21.75% subordination of classes M-1, M-2, B-1, and B-2 plus future overcollateralization equaling 5.25%. Credit enhancement for the class M-1 certificates is provided by the 14.25% subordination of classes M-2, B-1, and B-2 plus future overcollateralization equaling 5.25%. Credit enhancement for the class M-2 certificates is provided by the 9.25% subordination of classes B-1 and B-2 plus future overcollateralization equaling 5.25%.

The receivables consist of fixed-rate manufactured housing contracts secured by new (91.51%) and used (8.59%) manufactured homes. The pool has a weighted average remaining term-to-maturity of 313 months and is geographically diverse with concentrations in Texas (24.60%), Florida (9.62%), South Carolina (8.16%), Alabama (7.68%), Georgia (7.52%), Mississippi (6.64%), North Carolina (6.02%), and Arkansas (5.78%). No other state represents more than 5% of the pool.

Interest and principal on the certificates will be distributed on the 15th day of each month. Interest is paid first to the senior certificates, then to the class M, B-1 and B-2 certificates. Next, principal is distributed sequentially to all classes of certificates. Class M will not receive any principal until the senior classes have been reduced to zero or the crossover date and principal distribution tests have been met. Class B-1 will not receive any principal until the senior and class M principal has been reduced to zero or the cross-over date and principal distribution tests have been met. The crossover date is the later of the September 2004 distribution date or when the class M and the class B principal balance equals or exceeds 1.75 times (x) their original balance.

On the closing date, the overcollateralization amount will equal $15.2 million (3.25% of the initial pool balance). Excess spread will be used initially to accelerate principal payments to the senior certificates until the target overcollateralization of 5.25% of initial pool balance. After the step-down date, the overcollateralization amount may be reduced to 1.75 times the size of the initial class M-1, M-2, B-1 and B-2 certificates plus initial overcollateralization of the current pool balance. However, a floor of 1.25% of initial pool balance will be maintained.

BCI's Mortgage Division (BCIMD), a division of BCI was formed in February 1997. Headquartered in Jacksonville, Fla., it originates manufactured housing contracts through its dealer network.

BCI is an indirect, wholly owned subsidiary of Bombardier, Inc.; a Montreal-based corporation engaged in design, development, manufacturing, and marketing activities in the fields of transportation equipment, aerospace and motorized consumer products. BCI has been providing financial services to its parent, Bombardier, Inc. since 1974, and has since diversified its financing activities outside of Bombardier products. The largest segments of BCI's business are in financing dealer inventories for manufactured housing and recreational and specialty vehicles. Additionally, BCI provides lending, leasing, and asset management services to a variety of businesses.

BCI will perform all servicing functions on the receivables.

Given the quality of the collateral and BCI's servicing capabilities, Fitch IBCA believes certificateholders are adequately protected by the available credit enhancements.