MOODY'S REVIEWS FOR POSSIBLE DOWNGRADE CERTAIN CLASSES OF GREEN TREE'S MANUFACTURED HOUSING CERTIFICATES
52 Classes of Certificates Under Review
New York, November 19, 2004 -- Moody's Investors Service has placed on review for possible downgrade
the ratings on 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 among Fortress
Investment Group LLC, Cerberus Capital Management.
The complete ratings actions are as follows:
Issuer: Green Tree Financial Corporation
Series 1993-2:
8.00% Class B Certificates, rated B3, on review
for possible downgrade
Series 1996-3:
7.70% Class M-1 Certificates, rated B1,
on review for possible downgrade
Series 1996-4:
7.40% Class A-6 Certificates, rated Aa3,
on review for possible downgrade
7.90% Class A-7 Certificates, rated Aa3,
on review for possible downgrade
7.75% Class M-1 Certificates, rated B2,
on review for possible downgrade
Series 1996-5:
8.05% Class M-1 Certificates, rated B2,
on review for possible downgrade
Series 1996-6:
7.95% Class M-1 Certificates, rated Ba3,
on review for possible downgrade
Series 1996-7:
7.70% Class M-1 Certificates, rated Ba1,
on review for possible downgrade
7.70% Class B-1 Certificates, rated Ca,
on review for possible downgrade
Series 1996-8:
7.85% Class M-1 Certificates, rated B1,
on review for possible downgrade
Series 1996-9:
7.63% Class M-1 Certificates, rated B1,
on review for possible downgrade
7.65% Class B-1 Certificates, rated Ca,
on review for possible downgrade
Series 1997-1:
6.86% Class A-5 Certificates, rated A1,
on review for possible downgrade
7.29% Class A-6 Certificates, rated A1,
on review for possible downgrade
7.22% Class M-1 Certificates, rated B1,
on review for possible downgrade
7.23% Class B-1 Certificates, rated Ca,
on review for possible downgrade
Series 1997-2:
7.24% Class A-6 Certificates, rated A3,
on review for possible downgrade
7.62% Class A-7 Certificates, rated A3,
on review for possible downgrade
7.54% Class M-1 Certificates, rated B2,
on review for possible downgrade
Series 1997-3:
7.14% Class A-5 Certificates, rated A3,
on review for possible downgrade
7.32% Class A-6 Certificates, rated A3,
on review for possible downgrade
7.64% Class A-7 Certificates, rated A3,
on review for possible downgrade
7.53% Class M-1 Certificates, rated B2,
on review for possible downgrade
Series 1997-4:
6.88% Class A-5 Certificates, rated A2,
on review for possible downgrade
7.03% Class A-6 Certificates, rated A2,
on review for possible downgrade
7.36% Class A-7 Certificates, rated A2,
on review for possible downgrade
7.22% Class M-1 Certificates, rated B1,
on review for possible downgrade
Series 1997-5:
6.62% Class A-5 Certificates, rated Aa3,
on review for possible downgrade
6.82% Class A-6 Certificates, rated Aa3,
on review for possible downgrade
7.13% Class A-7 Certificates, rated Aa3,
on review for possible downgrade
6.95% Class M-1 Certificates, rated Ba3,
on review for possible downgrade
6.97% Class B-1 Certificates, rated Ca,
on review for possible downgrade
Series 1997-7:
7.03% Class M-1 Certificates, rated B1,
on review for possible downgrade
Series 1998-1:
6.04% Class A-4 Certificates, rated A3,
on review for possible downgrade
6.68% Class A-5 Certificates, rated A3,
on review for possible downgrade
6.33% Class A-6 Certificates, rated A3,
on review for possible downgrade
6.77% Class M-1 Certificates, rated B1,
on review for possible downgrade
Series 1998-2:
6.24% Class A-5 Certificates, rated Baa1,
on review for possible downgrade
6.81% Class A-6 Certificates, rated Baa1,
on review for possible downgrade
6.94% Class M-1 Certificates, rated B2,
on review for possible downgrade
Series 1998-4:
6.18% Class A-5 Certificates, rated Baa2,
on review for possible downgrade
6.53% Class A-6 Certificates, rated Baa2,
on review for possible downgrade
6.87% Class A-7 Certificates, rated Baa2,
on review for possible downgrade
6.83% Class M-1 Certificates, rated Caa1,
on review for possible downgrade
Series 1998-5:
6.54% Class A-1 Certificates, rated Baa1 on
review for possible downgrade
6.71% Class M-1 Certificates, rated B2,
on review for possible downgrade
Series 1998-7:
6.32% Class A-1 Certificates, rated Baa1,
on review for possible downgrade
6.40% Class M-1 Certificates, rated Ba3,
on review for possible downgrade
6.84% Class M-2 Certificates, rated B3,
on review for possible downgrade
Series 1998-8:
6.28% Class A-1 Certificates, rated Baa1,
on review for possible downgrade
6.98% Class M-1 Certificates, rated Ba3,
on review for possible downgrade
7.08% Class M-2 Certificates, rated Caa2,
on review for possible downgrade
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