MOODY'S DOWNGRADES OR CONFIRMS RATINGS ON CONSECO FINANCE INC's GUARANTEED SUBORDINATE CERTIFICATES
Approximately $911.3 Million of Asset-Backed Securities Affected.
New York, September 03, 2002 -- Moody's Investors Service downgraded the ratings of 42 subordinate classes
and confirmed the ratings of one subordinate class from Conseco Finance
Corporation's (formerly known as Green Tree Financial Corporation) manufactured
housing deals. All the affected classes rely on a corporate guarantee
from the company.
According to Moody's Senior Associate, Tamara Zaliznyak, the
rating actions were prompted by a series of downgrades of Conseco Finance,
Inc. In January 2002, Conseco Finance's long-term
senior unsecured debt rating was lowered from B1 to B2; in May 2002,
Moody's lowered the rating from B2 to Caa1 and on August 2, 2002,
Moody's further lowered the rating from Caa1 to Caa3.
The ratings on 39 subordinate classes were lowered and the rating of one
subordinate class was confirmed because the performance of the underlying
loans and available excess spread were sufficient to support a rating
higher than the corporate guarantee. In addition, three of
the subordinate classes were downgraded to Caa3 because these deals primarily
rely on the corporate guaranty to support the rating.
The complete ratings actions are as follows:
Green Tree Manufactured Housing Contract Senior/Subordinated Pass-Through
Certificates:
Series 1993-1; $30.048 mil., 8.45%
Class B Certificates, downgraded from Baa1 to Baa3
Series 1993-2; $65.337 mil., 8.00%
Class B Certificates, downgraded from Baa1 to Ba3
Series 1994-1; $36.505 mil., 7.85%
Class B-2 Certificates, downgraded from Baa3 to Ba3
Series 1994-2; $25.209 mil., 8.55%
Class B-2 Certificates, downgraded from Ba3 to B2
Series 1994-3; $12.805 mil., 8.65%
Class B-2 Certificates, rating confirmed at Ba3
Series 1994-4; $20.017 mil., 8.60%
Class B-2 Certificates, downgraded from Ba3, to B2
Series 1994-5; $25.021 mil., 8.55%
Class B-2 Certificates, downgraded from Ba3, to B2
Series 1994-6; $30.185 mil., 9.00%
Class B-2 Certificates, downgraded from Ba3, to B3
Series 1994-7; $21.210 mil., 9.35%
Class B-2 Certificates, downgraded from Ba3, to B3
Series 1994-8; $31.392 mil., 9.40%
Class B-2 Certificates, downgraded from Ba3, to B3
Series 1995-1; $22.721 mil., 9.20%
Class B-2 Certificates, downgraded from Ba3, to B3
Series 1995-2; $16.456 mil., 8.80%
Class B-2 Certificates, downgraded from Ba3, to Caa1
Series 1995-3; $22.636 mil., 8.10%
Class B-2 Certificates, downgraded from Ba3, to B1
Series 1995-4; $12.803 mil., 7.70%
Class B-2 Certificates, downgraded from Ba3, to B1
Series 1995-5; $18.053 mil., 7.65%
Class B-2 Certificates, downgraded from Ba2, to B2
Series 1995-6; $17.844 mil., 8.00%
Class B-2 Certificates, downgraded from Ba3, to Caa1
Series 1995-7; $13.904 mil., 7.70%
Class B-2 Certificates, downgraded from Ba3, to B1
Series 1995-8; $19.196 mil., 7.65%
Class B-2 Certificates, downgraded from Ba3, to B2
Series 1995-9; $15.948 mil., 7.55%
Class B-2 Certificates, downgrade from Ba2, to B2
Series 1995-10; $16.212 mil., 7.40%
Class B-2 Certificates, downgraded from Ba2, to B3
Series 1996-1; $15.966 mil., 7.30%
Class B-2 Certificates, downgraded from Ba2, to B2
Series 1996-2; $18.618 mil., 7.90%
Class B-2 Certificates, downgraded from Ba3, to Caa2
Series 1996-3; $14.883 mil., 8.05%
Class B-2 Certificates, downgraded from Ba3, to Caa2
Series 1996-4; $16.614 mil., 8.10%
Class B-2 Certificates, downgraded from Ba3, to Caa3
Series 1996-5; $18.115 mil., 8.45%
Class B-2 Certificates, downgraded from Ba3, to Caa3
Series 1996-6; $16.625 mil., 8.35%
Class B-2 Certificates, downgraded from Ba3, to Caa3
Series 1996-7; $16.800 mil., 8.10%
Class B-2 Certificates, downgraded from Ba3, to Caa1
Series 1996-8; $21.051 mil., 8.30%
Class B-2 Certificates, downgraded from Ba3, to Caa1
Series 1996-9; $15.750 mil., 8.11%
Class B-2 Certificates, downgraded from Ba3, to Caa2
Series 1997-1; $17.500 mil., 7.76%
Class B-2 Certificates, downgraded from Ba3, to Caa1
Series 1997-2; $19.250 mil., 8.05%
Class B-2 Certificates, downgraded from Ba3, to Caa2
Series 1997-3; $28.000 mil., 8.03%
Class B-2 Certificates, downgraded from Ba2, to Caa1
Series 1997-4; $18.200 mil., 7.73%
Class B-2 Certificates, downgraded from Ba2, to B3
Series 1997-5; $19.250 mil., 7.49%
Class B-2 Certificates, downgraded from Ba2, to B3
Series 1997-7; $19.250 mil., 7.59%
Class B-2 Certificates, downgraded from Ba2, to Caa1
Series 1998-1; $15.750 mil., 8.11%
Class B-2 Certificates, downgraded from Ba2, to Caa1
Series 1998-2; $30.00 mil., 8.44%
Class B-2 Certificates, downgraded from Ba3, to Caa2
Series 1998-4; $20.000 mil., 8.11%
Class B-2 Certificates, downgraded from Ba3, to Caa1
Series 1998-5; $14.260 mil., 7.99%
Class B-2 Certificates, downgraded from Ba3, to Caa2
Series 1998-7; $34.000 mil., 8.24%
Class B-2 Certificates, downgraded from Ba2, to Caa2
Series 1998-8; $60.750 mil., 8.50%
Class B-2 Certificates, downgraded from Ba2, to Caa1
Conseco Finance Securitizations Corp.:
Series 1999-6; $35.000 mil., 9.20%
Class B-2 Certificates, downgraded from Ba2, to Caa1
Series 2000-1; $31.500 mil., 8.80%
Class B-2 Certificates, downgraded from Ba2, to Caa1
Conseco Finance Corp., based in St. Paul, Minnesota,
is a financial services company that originates and services manufactured
housing, subprime mortgage and consumer loans. Conseco Finance
Corp., a wholly owned subsidiary of Conseco Inc.,
is the largest servicer of manufactured housing contracts in the United
States, with a servicing portfolio of approximately $24.4
billion in receivables as of March 2002.
New York
Pramila Gupta
Managing Director
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
New York
Denise Person
VP - Senior Credit Officer
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653