Conseco/Green Tree HEL, HI Classes Downgraded

Twenty-four classes from 34 Conseco/Green Tree home equity and home improvement securitizations have been downgraded by Fitch Ratings, and 54 classes have been removed from Rating Watch Negative.In addition, Fitch upgraded 36 classes and affirmed the ratings on 55 classes from the deals. The downgrades were attributed to "concerns regarding adequacy of remaining credit enhancement in light of nonperforming assets and expected losses." Fitch said a majority of the downgrades involve the assignment of a C rating to the most subordinate class of outstanding certificates in the series because limited guarantees by Conseco Finance Corp. no longer secure the classes. "As a result, losses are now having a direct impact on the downgraded certificates," the rating agency said. Fitch noted that it had previously placed a number of classes on Rating Watch Negative due to concerns about Conseco's financial strength (the company filed for bankruptcy about two years ago) and a lack of information on servicing practices. Their removal from the watchlist followed Fitch's review of modification servicing techniques and its observation of collateral performance, the rating agency said. Fitch can be found online at http://www.fitchratings.com.