Aug 11,11:30:BW: Fitch has rated Conseco Finance Corp.'s manufactured housing contract
senior/subordinate pass-through
certificates Series 2000-4 $1.05 billion class A-1 through A-6 certificates
'AAA'.
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biz.yahoo.com
Friday August 11, 12:53 pm Eastern Time
Press Release
Conseco 2000-4 $1.2B Manufactured Hsg Contract P-T Rtd By Fitch
NEW YORK--(BUSINESS WIRE)--Aug. 11, 2000
--Fitch has rated Conseco Finance Corp.'s (Conseco)
manufactured housing contract senior/subordinate
pass-through certificates Series 2000-4 $1.05 billion class
A-1 through A-6 certificates
'AAA'.
Other classes are rated as follows:
$62.5 million class M-1 certificates, 'AA;'
$50 million class M-2 certificates, 'A'
and
$37.5 million class B-1 certificates, 'BBB.'
The ratings for classes A, M-1, M-2 and B-1 are based upon
the quality of the manufactured housing contracts, the
respective levels of credit enhancement, the integrity of
the legal and financial structures and Conseco servicing
capabilities.
Credit enhancement for the class A certificates reflects
the credit support provided by the 15.5% subordinate
classes M-1, M-2, B-1 and B-2. Support for class M-1 is
provided by the 10.5% classes M-2, B-1 and B-2. Support for
the class M-2 is provided by the 6.5% classes B-1 and B-2.
Support for the B-1 is provided by the 3.5% class B-2
certificates. Support for the class B-2 certificates is
provided by Conseco under a limited corporate guaranty.
The class B-2 certificates are not being offered at this
time. All of the certificates benefit from monthly excess
cash and overcollateralization to absorb losses.
Overcollateralization is initially 0.5% of the total cutoff
pool balance plus the additional contracts and will grow to
2.00%.
Fitch's analysis is based on an initial contract pool of
$883,060,222, which represents 70.64% of the total pool.
Approximately $366.9 million of additional contracts will
be deposited into the trust either by the closing date or
by Oct. 30, 2000.
Conseco represents that the characteristics of the
additional contracts will not deviate beyond Fitch's
acceptable level of tolerance.
Fitch monitors the characteristics of the additional contracts to ensure conformity to the representations made
by Conseco.
The $883 million initial pool consists of fixed-rate
manufactured housing contracts secured by new
(approximately 66%) and used (approximately 34%) manufactured homes. The pool has a weighted average
remaining term to maturity of roughly 323 months,
and is geographically diverse with concentrations
in North Carolina (7.61%),
Texas (7.42%),
Michigan (6.28%),
Indiana (5.31%) and
California (5.18%).
No other state represents more than 5% of the pool.
Approximately 49.72% of the pool balance consist of land-and-home contracts.
Interest is paid first to the class A certificates followed
by interest to the class M-1, M-2 and B-1 certificates.
Next, principal is distributed sequentially to the class A,
M-1, M-2 and B-1 certificates.
Finally, interest then principal is paid to class B-2.
Payments of principal will not be distributed to class M-1
until the class A Principal Balance has been reduced to
zero or the M-1 Distribution Test has been satisfied.
Payments of principal will not be distributed to class M-2
until the class A and M-1 Principal Balance has been
reduced to zero or the M-2 Distribution Test has been
satisfied. Payments of principal will not be distributed to
class B-1 until the class A, class M-1, class M-2 Principal Balances have been reduced to zero or the class B
Distribution Test has been satisfied. Class B-2 will not
receive any principal until class A, class M-1, class M-2
and class B-1 have been repaid in full.
The servicing fee for this transaction will be 0.50% initially.
In the event that servicing is transferred to a party other
than Conseco, an additional servicing fee of 0.50% will be
paid to that party. The additional servicing fee will be
paid after all of the bonds have been paid their interest
and principal.
The contracts were either originated directly by Conseco or
originated by an approved dealer and purchased by Conseco.
Conseco will perform all servicing functions on the
receivables.
Fitch is an international rating agency that provides
global capital market investors with the highest quality
ratings and research. Dual headquartered in New York and
London with a major office in Chicago, Fitch rates entities in 75 countries and has some 1,100 employees in more than
40 local offices worldwide. The agency, which is a
combination of Fitch IBCA and Duff & Phelps Credit Rating
Co., provides ratings for financial institutions,
insurance, corporates, structured finance, sovereigns and
public finance markets worldwide.
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Contact:
Fitch, New York
Stephen Lei, 212/908-0778 |
