<font color=red>Fitch Rts Conseco 2000-5 $750MM Manuf Hsg Contract 'AAA'
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5/00 9:45:00 AM
Source: Business Wire
Fitch Rts Conseco 2000-5 $750MM Manuf Hsg Contract P-Ts
cnetinvestor.com
NEW YORK--(BUSINESS WIRE)--Oct. 5, 2000--Fitch has rated Conseco Finance Corp's (Conseco) manufactured housing contract senior/subordinate pass-through certificates series 2000-5 $626.3 billion class A-1 through A-7 certificates 'AAA'.
Other classes are rated as follows: $37.5 million class M-1 certificates, 'AA' $30 million class M-2 certificates, 'A' and $22.5 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. 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 1% 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 $363,950,052 which represents 48.53% of the total pool. Approximately $386 million of additional contracts will be deposited into the trust either by the closing date or by Dec. 31, 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 $364 million initial pool consists of fixed-rate manufactured housing contracts secured by new (approximately 73%) and used (approximately 27%) manufactured homes. The pool has a weighted average remaining term to maturity of roughly 328 months, and is geographically diverse with concentrations in Texas (12.08%), North Carolina (8.59%), Michigan (8.01%), and Alabama (5.44%). No other state represents more than 5% of the pool. Approximately 36.28% 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. |
