Conseco HEL, HIL Classes Downgraded

Eleven subordinate classes of home equity and home improvement deals issued by Conseco Finance Corp. (formerly Green Tree Financial Corp.) have been downgraded by Moody's Investors Service.The downgrades in Green Tree Home Improvement Loan Trust deals were as follows: series 1994-BI, class B-2, from Ba1 to B2; series 1994-CI, class B-2, from Ba1 to Caa2; series 1994-D, class B-2, from Ba3 to Caa3; series 1995-A, class B, from Ba1 to Caa2; series 1995-E, class Certificate, from Ba1 to B2; series 1995-F, class B-2, from Ba1 to Ba3; series 1996-A, class B-2, from Ba1 to Ba3; and series 1996-B, class A, from Ba1 to Ba3. The downgrades in Green Tree Home Improvement and Home Equity Loan Trust deals were: 1998-F, class B-2, from Ba2 to Caa2; and 1999-B, class B-2, from Ba2 to Caa3. In Conseco Finance Home Loan Trust 1999-G, class B-2 was downgraded from Ba2 to Caa2. The affected classes received a significant portion of their credit enhancement from a corporate guarantee from Conseco Finance Corp., which filed for bankruptcy Dec. 17. Moody's no longer relies on the corporate guarantee payments as credit enhancement, and the rating agency said excess spread alone may not be sufficient to cover expected losses for some of the transactions.