The ratings on over 180 classes in 45 Conseco Finance Corp. and Conseco-related manufactured housing deals have been placed on CreditWatch with negative implications by Standard & Poor's Ratings Services.The actions stem from "continued poor performance" by the underlying pools of manufactured housing contracts and the resulting decline in credit enhancement since S&P's last rating actions in mid-2003, the rating agency said. "Series included in more recent vintages have displayed greater signs of stress relative to series issued in earlier vintages," S&P said. Conseco exited the manufactured home financing business and suspended its loan assumption program in November 2002. The latter resulted in higher repossessions, and the exit from MH lending has limited Conseco's ability to liquidate repossessed units through retail channels, causing it to be more reliant on wholesale channels, S&P said. "In conjunction with the depressed repossession resale market, these factors have resulted in the further weakening of recovery rates associated with these transactions," the rating agency said. S&P said it expects to complete a detailed review of the transactions in the next two months to determine whether any rating changes are necessary. S&P can be found online at http://www.standardandpoors.com.
