Conseco-Linked ABS Downgraded

Fourteen corporate-guaranteed classes of Conseco Finance Corp.-related transactions have been downgraded from CCC-minus to D (default) by Standard & Poor's Ratings Services.In addition, the ratings on all classes above B-2 from the transactions originated between 1995 and 2002 remain on CreditWatch with negative implications. The downgraded classes are the B-2 classes in the following Green Tree Financial Corp. Manufactured Housing Trust series: 1995-2, 1995-3, 1995-4, 1995-5, 1995-6, 1995-7, 1995-8, 1995-9, 1995-10, 1996-1, 1996-2, 1996-7, 1996-10, and 1997-4. S&P said the subordinate B-2 certificateholders of the affected trusts experienced interest shortfalls in February for the second consecutive month. The interest shortfalls (about $3.26 million) represent rating defaults, and without the guarantee payments deposited by Conseco, S&P said it believes that B-2 interest shortfalls "will continue to be prevalent in the future for all of the guaranteed certificates, given the adverse performance trends displayed by the underlying pools of collateral that secure these classes, as well as the location of B-2 interest at the bottom of the transaction payment priorities (after distributions of senior principal)." S&P can be found on the Web at http://www.standardandpooors.com.