Fitch Ratings has downgraded 21 classes in Conseco Finance/Green Tree Finance manufactured housing transactions.Fitch also affirmed its ratings on 223 classes in 56 Conseco/Green Tree deals. The rating agency said the downgrades stem from collateral losses that have exceeded excess spread, causing bond writedowns and a deterioration in credit enhancement. Fitch said it expects collateral performance to remain "relatively stable" for transactions issued before 1999. But for deals issued since then, despite an expected modest improvement in collateral performance, the rating agency said longer amortization terms, higher percentages of repo-refinances, and generally weaker collateral attributes "will result in only modest decreases in the default rate over the next several years." Fitch can be found online at http://www.fitchratings.com.

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