MOODY'S DOWNGRADES CERTAIN CLASSES OF GREEN TREE'S MANUFACTURED HOUSING CERTIFICATES
52 Classes of Certificates Affected
New York, December 13, 2004 -- Moody's Investors Service has downgraded certain senior, mezzanine
and subordinate certificates of 20 Green Tree Financial Corp. (subsequently
Conseco Finance Corp.) manufactured housing securitizations.
The transactions are currently being serviced by Green Tree Investment
Holdings II LLC, which bought the MH servicing platform of Conseco
Finance in 2003.
Moody's previously downgraded the senior, mezzanine and subordinate
certificates of 44 Green Tree's 1992-1998 securitizations
in December 2003 and 13 Conseco's 1999-2002 securitizations
in December 2003 and August 2004. The rating actions were prompted
by the continued performance deterioration of Green Tree pools and the
resulting erosion of credit support.
The current review is prompted by the continued weaker-than-expected
performance of Green Tree's pools. Although repossessions
and loss severities have decreased, the improvement has been slower
than expected. As a result, losses remain high and credit
support continues to erode. The B-2 classes of many of the
pools have been completely written down.
Green Tree Investment Holdings II LLC is a joint venture between Fortress
Investment Group LLC and Cerberus Capital Management.
The complete ratings actions are as follows:
Issuer: Green Tree Financial Corporation
Series 1993-2:
8.00% Class B Certificates, downgraded from B3 to
Caa1
Series 1996-3:
7.70% Class M-1 Certificates, downgraded from
B1 to B2
Series 1996-4:
7.40% Class A-6 Certificates, downgraded from
Aa3 to A2
7.90% Class A-7 Certificates, downgraded from
Aa3 to A2
7.75% Class M-1 Certificates, downgraded from
B2 to B3
Series 1996-5:
8.05% Class M-1 Certificates, downgraded from
B2 to B3
Series 1996-6:
7.95% Class M-1 Certificates, downgraded from
Ba3 to B3
Series 1996-7:
7.70% Class M-1 Certificates, downgraded from
Ba1 to B1
7.70% Class B-1 Certificates, downgraded from
Ca to C
Series 1996-8:
7.85% Class M-1 Certificates, downgraded from
B1 to B3
Series 1996-9:
7.63% Class M-1 Certificates, downgraded from
B1 to B2
7.65% Class B-1 Certificates, downgraded from
Ca to C
Series 1997-1:
6.86% Class A-5 Certificates, downgraded from
A1 to A2
7.29% Class A-6 Certificates, downgraded from
A1 to A2
7.22% Class M-1 Certificates, downgraded from
B1 to B3
7.23% Class B-1 Certificates, downgraded from
Ca to C
Series 1997-2:
7.24% Class A-6 Certificates, downgraded from
A3 to Baa1
7.62% Class A-7 Certificates, downgraded from
A3 to Baa1
7.54% Class M-1 Certificates, downgraded from
B2 to Caa1
Series 1997-3:
7.14% Class A-5 Certificates, downgraded from
A3 to Baa1
7.32% Class A-6 Certificates, downgraded from
A3 to Baa1
7.64% Class A-7 Certificates, downgraded from
A3 to Baa1
7.53% Class M-1 Certificates downgraded from B2 to
Caa1
Series 1997-4:
6.88% Class A-5 Certificates, downgraded from
A2 to A3
7.03% Class A-6 Certificates, downgraded from
A2 to A3
7.36% Class A-7 Certificates, downgraded from
A2 to A3
7.22% Class M-1 Certificates, downgraded from
B1 to B3
Series 1997-5:
6.62% Class A-5 Certificates, downgraded from
Aa3 to A2
6.82% Class A-6 Certificates, downgraded from
Aa3 to A2
7.13% Class A-7 Certificates, downgraded from
Aa3 to A2
6.95% Class M-1 Certificates, downgraded from
Ba3 to B2
6.97% Class B-1 Certificates, downgraded from
Ca to C
Series 1997-7:
7.03% Class M-1 Certificates, downgraded from
B1 to B3
Series 1998-1:
6.04% Class A-4 Certificates, downgraded from
A3 to Baa2
6.68% Class A-5 Certificates, downgraded from
A3 to Baa2
6.33% Class A-6 Certificates, downgraded from
A3 to Baa2
6.77% Class M-1 Certificates, downgraded from
B1 to B3
Series 1998-2:
6.24% Class A-5 Certificates, downgraded from
Baa1 to Baa3
6.81% Class A-6 Certificates, downgraded from
Baa1 to Baa3
6.94% Class M-1 Certificates, downgraded from
B2 to Caa1
Series 1998-4:
6.18% Class A-5 Certificates, downgraded from
Baa2 to Baa3
6.53% Class A-6 Certificates, downgraded from
Baa2 to Baa3
6.87% Class A-7 Certificates, downgraded from
Baa2 to Baa3
6.83% Class M-1 Certificates, downgraded from
Caa1 to Caa2
Series 1998-5:
6.54% Class A-1 Certificates, downgraded from
Baa1 to Baa3
6.71% Class M-1 Certificates, downgraded from
B2 to Caa1
Series 1998-7:
6.32% Class A-1 Certificates, downgraded from
Baa1 to Baa3
6.40% Class M-1 Certificates, downgraded from
Ba3 to B3
6.84% Class M-2 Certificates, downgraded from
B3 to Caa2
Series 1998-8:
6.28% Class A-1 Certificates, downgraded from
Baa1 to Baa3
6.98% Class M-1 Certificates, downgraded from
Ba3 to B3
7.08% Class M-2 Certificates, downgraded from
Caa2 to Ca
New York
Pramila Gupta
Managing Director
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
New York
Danise Chui
Associate Analyst
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653