Green Tree MH, HIL Deals Downgraded

The subordinate classes from all of Green Tree Financial Corp.'s 1994 manufactured housing deals and from 13 Green Tree home improvement loan deals have been downgraded by Moody's Investors Service.The actions stemmed from the recent confirmation at Baa3 (with a negative outlook) of the rating on Green Tree's long-term senior-debt securities, Moody's said. The subordinated classes are supported by a 100% guarantee from Green Tree. "Given the relatively low absolute levels of excess spread, limited seasoning, and limited spread to cover expected future losses, the ratings on these subordinated classes rely primarily on Green Tree's corporate guarantee for credit support," the rating agency said of the downgrades on the manufactured housing deals. Similar factors were cited in home improvement loan deal downgrades. In addition to the downgrades, Moody's confirmed the ratings on 34 classes of manufactured housing deals and one class of home improvement loan deal.