In Hollywood Funding, because of a refusal by Lexington Insurance Company to honor a triple-A wrap on two deals, both were downgraded by Standard & Poor's to CCC-minus' from AAA.' Lexington is a wholly owned subsidiary of American International Group (see ASR 3/19 p. 1). In the Heilig-Meyers' event, where two series of triple-A rated notes were downgraded to below investment grade by all three ratings agencies, the ratings actions were the result of significant portfolio deterioration following a controversial servicing transfer. "I think Heilig-Meyers is a real event, and a wake-up call," said one bank researcher, formerly a senior at one of the rating agencies. "I think the Hollywood Funding event, timing wise, was just a coincidence, and not a symptom of the same problem, except to the extent that they are both risky deals to begin with."