MOODY'S DOWNGRADES OR CONFIRMS RATINGS ON CONSECO FINANCE SUBORDINATE CERTIFICATES
Approximately $2.9 Billion of Asset-Backed Securities Affected
New York, July 27, 2000 -- Moody's Investors Service has downgraded the ratings of 47 subordinate
classes from Conseco Finance Corp.'s (formerly known as Green Tree
Financial Corporation) manufactured housing, home improvement and
home equity deals. In a related action Moody's confirmed the ratings
of eighteen subordinated classes and upgraded the rating of one subordinate
class. All but one of the affected classes include Conseco Finance
Corp.'s manufactured housing, home improvement and home equity
classes that rely on a corporate guarantee from the company.
According to Christine Lachnicht, a Moody's vice president-senior
analyst, the rating actions were prompted by Moody's announcement
on June 30, 2000 that the rating on Conseco Finance Corp.'s
long-term senior debt securities had been downgraded to Ba3.
Eighteen of the subordinate classes were downgraded to Ba2 from Ba1,
one rating notch above the rating of corporate guarantor, Conseco
Finance Corp., because performance of the underlying loans
and available excess spread was sufficient to support a rating higher
than the corporate guaranty. The remaining 29 subordinate classes
were downgraded to Ba3 because these deals primarily rely on the corporate
guaranty to support the rating.
The complete rating actions are as follows:
Green Tree Manufactured Housing Contract Senior/Subordinated Pass-Through
Certificates:
Series 1992-1; $36,161 mil., 8.75%
Class B-2 Certificates, rating confirmed at Baa1
Series 1992-2; $49,014 mil., 9.15%
Class B-2 Certificates, rating confirmed at Baa2
Series 1993-1; $30, 048 mil., 8.45%
Class B-2 Certificates, rating confirmed at Baa1
Series 1993-2; $65,337 mil., 8.00%
Class B-2 Certificates, rating confirmed at Baa1
Series 1993-3; $79,602 mil., 6.85%
Class B-2 Certificates, rating confirmed at Baa1
Series 1993-4; $50, 768 mil., 7.20%
Class B-1 Certificates, upgraded to A2 from Baa3
Series 1993-4; $29,011 mil., 8.55%
Class B-2 Certificates, rating confirmed at Baa2
Series 1994-1; $36,505 mil., 7.85%
Class B-2 Certificates, rating confirmed at Baa3
Series 1994-2; $25,209 mil., 8.55%
Class B-2 Certificates, downgraded to Ba3 from Ba1
Series 1994-3; $12.805 mil., 8.65%
Class B-2 Certificates, downgraded to Ba3 from Ba1
Series 1994-4; $20.017 mil., 8.60%
Class B-2 Certificates, downgraded to Ba3 from Ba1
Series 1994-5; $25.021 mil., 8.55%
Class B-2 Certificates, downgraded to Ba3 from Ba1
Series 1994-6; $30.185 mil., 9.00%
Class B-2 Certificates, downgraded to Ba3 from Ba1
Series 1994-7; $21.210 mil., 9.35%
Class B-2 Certificates, downgraded to Ba3 from Ba1
Series 1994-8; $31.392 mil., 9.40%
Class B-2 Certificates, downgraded to Ba3 from Ba1
Series 1995-1; $22.722 mil., 9.20%
Class B-2 Certificates, downgraded to Ba3 from Ba1
Series 1995-2; $16.457 mil., 8.80%
Class B-2 Certificates, downgraded to Ba3 from Ba1
Series 1995-3; $22.636 mil., 8.10%
Class B-2 Certificates, downgraded to Ba3 from Ba1
Series 1995-4; $12.804 mil., 7.70%
Class B-2 Certificates, downgraded to Ba3 from Ba1
Series 1995-5; $18.054 mil., 7.65%
Class B-2 Certificates, downgraded to Ba2 from Ba1
Series 1995-6; $17.845 mil., 8.00%
Class B-2 Certificates, downgraded to Ba3 from Ba1
Series 1995-7; $13.904 mil., 7.70%
Class B-2 Certificates, downgraded to Ba3 from Ba1
Series 1995-8; $19.197 mil., 7.65%
Class B-2 Certificates, downgraded to Ba3 from Ba1
Series 1995-9; $15.948 mil., 7.55%
Class B-2 Certificates, downgraded to Ba2 from Ba1
Series 1995-10; $16.212 mil., 7.40%
Class B-2 Certificates, downgraded to Ba2 from Ba1
Series 1996-1; $15.967 mil., 7.30%
Class B-2 Certificates, downgraded to Ba2 from Ba1
Series 1996-2; $18.618 mil., 7.90%
Class B-2 Certificates, downgraded to Ba3 from Ba1
Series 1996-3; $14.884 mil., 8.05%
Class B-2 Certificates, downgraded to Ba3 from Ba1
Series 1996-4; $16.615 mil., 8.10%
Class B-2 Certificates, downgraded to Ba3 from Ba1
Series 1996-5; $18.116 mil., 8.45%
Class B-2 Certificates, downgraded to Ba3 from Ba1
Series 1996-6; $16.625 mil., 8.35%
Class B-2 Certificates, downgraded to Ba3 from Ba1
Series 1996-7; $16.800 mil., 8.10%
Class B-2 Certificates, downgraded to Ba3 from Ba1
Series 1996-8; $21.052 mil., 8.30%
Class B-2 Certificates, downgraded to Ba3 from Ba1
Series 1996-9; $15.750 mil., 8.11%
Class B-2 Certificates, downgraded to Ba3 from Ba1
Series 1997-1; $17.500 mil., 7.76%
Class B-2 Certificates, downgraded to Ba3 from Ba1
Series 1997-2; $19.250 mil., 8.05%
Class B-2 Certificates, downgraded to Ba3 from Ba1
Series 1997-3; $28.000 mil., 8.03%
Class B-2 Certificates, downgraded to Ba2 from Ba1
Series 1997-4; $18.200 mil., 7.73%
Class B-2 Certificates, downgraded to Ba2 from Ba1
Series 1997-5; $19.250 mil., 7.49%
Class B-2 Certificates, downgraded to Ba2 from Ba1
Series 1997-7; $19.250 mil., 7.59%
Class B-2 Certificates, downgraded to Ba2 from Ba1
Series 1998-1; $15.750 mil., 8.11%
Class B-2 Certificates, downgraded to Ba2 from Ba1
Series 1998-2; $30.00 mil., 8.44%
Class B-2 Certificates, downgraded to Ba3 from Ba1
Series 1998-4; $20.00 mil., 8.11%
Class B-2 Certificates, downgraded to Ba3 from Ba1
Series 1998-5; $14.26 mil., 7.99%
Class B-2 Certificates, downgraded to Ba3 from Ba1
Series 1998-7; $34.00 mil., 8.24%
Class B-2 Certificates, downgraded to Ba2 from Ba1
Series 1998-8; $60.75 mil., 8.50%
Class B-2 Certificates, downgraded to Ba2 from Ba1
Conseco Finance Securitizations Corp.:
Series 1999-6; $35.00 mil., 9.20%
Class B-2 Certificates, downgraded to Ba2 from Ba1
Series 2000-1; $31.50 mil., 8.80%
Class B-2 Certificates, downgraded to Ba2 from Ba1
Green Tree Home Improvement Loan Trust:
Series 1994-BI; $9.055 mil., 8.70%
Class B-2 Certificates, confirmed at Ba1
Series 1994-CI; $10.717 mil., 8.90%
Class B-2 Certificates, confirmed at Ba1
Series 1994-CII; $12.482 mil.,
8.10% Class A-2 Certificates, downgraded to
Ba3 from Ba1
Series 1994-D; $9.871 mil., 9.30%
Class B-2 Certificates, downgraded to Ba3 from Ba1
Series 1994-E; $12.282 mil., 9.15%
Certificates, confirmed at Ba1
Series 1995-A; $12.305 mil., 8.45%
Class B Certificates, confirmed at Ba1
Series 1995-B; $12.179 mil., 8.15%
Certificates, confirmed at Ba1
Series 1995-C; $8.409 mil., 7.60%
Class B-2 Certificates, rating confirmed at Ba1
Series 1995-D; $10.442 mil., 7.45%
Class B-2 Certificates, rating confirmed at Ba1
Series 1995-E; $32.241 mil., 6.80%
Certificates, rating confirmed at Ba1
Series 1995-F; $8.022 mil., 7.10%
Class B-2 Certificates, rating confirmed at Ba1
Series 1996-A; $5.626 mil., 7.40%
Class B-2 Certificates, rating confirmed at Ba1
Series 1996-B; $25.130 mil., 6.45%
Class A Certificates, rating confirmed at Ba1
Green Tree Home Improvement and Home Equity Loan Trust:
Series 98-F; $24.75 mil., 10.08%
Class B-2 Notes, downgraded to Ba2 from Ba1
Series 99-B; $26.20 mil., 11.16%
Class B-2 Notes, downgraded to Ba2 from Ba1
Conseco Finance Home Loan Trust:
Series 99-G; $19.938 mil., 10.96%
Class B-2 Notes, downgraded to Ba2 from Ba1
Series 2000-A; $13.8 mil., Adj.
Rate Class BV-2 Certificates, downgraded to Ba2 from Ba1
Series 2000-B; $35.0 mil., 10.00%
Class BF-2 Certificates, downgraded to Ba2 from Ba1
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. is a wholly owned subsidiary of Conseco Inc.,
and currently, the parent company is exploring the sale of the company.
New York
Linda Stesney
Managing Director
Structured Finance Group
Moody's Investors Service
JOURNALISTS: (212) 553-0376
SUBSCRIBERS: (212) 553-1653
New York
Christine Lachnicht
Vice President - Senior Analyst
Structured Finance Group
Moody's Investors Service
JOURNALISTS: (212) 553-0376
SUBSCRIBERS: (212) 553-1653