Various Rating Actions Taken On 15 Green Tree-Related Manufactured Housing ABS Transactions

Stocks and Financial Services Press Releases Friday June 8, 2018 09:42
NEW YORK--8 Jun--S&P Global Ratings

NEW YORK (S&P Global Ratings) June 7, 2018--S&P Global Ratings today took various rating actions affecting 19 classes from 15 Green Tree-related manufactured housing asset-backed securities (ABS) transactions. Overall, we raised our ratings on 16 classes and affirmed our ratings on three.

The 15 affected transactions were issued out of Green Tree Financial Corp. Manufactured Housing Trust and Manufactured Housing Contract Senior/Subordinate Pass-Through Certificates.

Today's rating actions reflect the transactions' collateral performance to date, our views regarding future collateral performance, the transactions' structures, and the credit enhancement available. Furthermore, our analysis incorporated secondary credit factors such as credit stability, payment priorities under certain scenarios, and sector- and issuer-specific analysis.

The upgrades reflect our assessment of the growth in credit enhancement for the affected classes in the form of subordination, which we expect will mitigate the impact of losses being higher than originally expected for these pools.

The affirmations reflect our view that the total credit support as a percentage of the amortizing pool balances, compared with our expected remaining cumulative net losses, is sufficient to support the current ratings.

While all 15 transactions are experiencing higher cumulative net losses than initially expected, they are performing in line with or better than our former revised lifetime expectations. We also considered the significant rise in delinquencies over the past few years; as a result, we are maintaining our loss expectations (see table 1).

Table 1
(As of April 2018 distribution date)
Series Mo. Pool Current Expected
factor CNL lifetime CNL(i)
Green Tree Financial Corp. Manufactured Housing Trust
1995-6 272 2.41 14.24 14.75-15.25
1995-7 271 2.50 14.03 14.75-15.25
1995-8 270 2.53 14.46 15.00-15.50
1995-9 269 2.73 14.02 14.50-15.00
1995-10 268 2.82 14.03 14.50-15.00
1996-1 266 3.39 13.56 14.00-15.00
1996-7 260 4.09 16.81 17.75-18.75
1996-10 256 4.56 16.40 17.00-18.00
1997-8 244 6.89 17.50 18.50-19.50
1998-2 241 6.59 20.84 22.25-23.25
1998-3 240 7.53 21.25 23.25-24.25
1998-5 238 8.92 18.00 20.10-21.10
1998-6 236 7.79 20.95 23.50-24.50
1998-8 233 9.80 20.25 22.75-23.75
Manufactured Housing Contract Sr/Sub Pass-Through Certificates
2001-4 196 10.91 27.97 32.50-33.50
(i)Lifetime CNL expectations based on current performance data.
CNL--cumulative net loss.

Each transaction was initially structured with overcollateralization (O/C) and subordination. However, due to higher-than-expected losses, the O/C on each of these transactions has been depleted to zero, and many of the subordinated classes have experienced principal write-downs.

S&P Global Ratings will continue to monitor the performance of the transactions relative to our cumulative net loss expectations and the available credit enhancement. We will take rating actions as we consider appropriate.

Latest Press Release

Fitch Affirms Standard Chartered Bank (Thai) at #A-#; Outlook Stable

Fitch Ratings has affirmed Standard Chartered Bank (Thai) Public Company Limited's (SCBT) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDR) at 'A-' with a Stable Outlook. At the same time, the agency has affirmed SCBT's National...

Photo Release: KBank recognized as having the highest corporate brand value in the banking business category 2nd consecutive year

At Sukree Kaewcharoen Auditorium, the Stock Exchange of Thailand (SET), Ms. Kattiya Indaravijaya, KBank President, recently represented KBank to receive the "Thailand's Top Corporate Brand Values 2018" award in the banking business category from...

MicroBitcoin Open Source Community เซ็นสัญญากับสมาพันธ์แรงงานในเกาหลี เปิดโอกาสให้แรงงาน 1.5 ล้านคนได้ใช้เงินดิจิทัล

MicroBitcoin Open Source Community เซ็นสัญญากับสมาพันธ์แรงงาน Korea Association of Care Workers (KACW) เพื่อนำสกุลเงินดิจิทัล MicroBitcoin มาใช้ สัญญานี้ลงนามร่วมกันสามฝ่าย ได้แก่ MicroBitcoin Open Source Community, KACW และ Bluequotient...

MicroBitcoin Open Source Community Signs an Exclusive Contract with the Korea Association of Care Workers (KACW) to Expand its Usability to One and a Half Million Users

The MicroBitcoin Open Source Community has signed a contract with Korea Association of Care Workers (KACW) to adapt the MicroBitcoin blockchain network protocol. The trilateral contract was made between the MicroBitcoin Open Source Community, the Korea...

WICE establishes a joint-venture, EUROASIA TOTAL LOGISTICS, with its holding 40% of shares to provide cross-border transport services between China, Hong Kong

WICE establishes a joint-venture, "EUROASIA TOTAL LOGISTICS", with its holding 40% of shares to provide cross-border transport services between China, Hong Kong, and South East Asia with the expectation to achieve the first year's revenue at 200 million...

Related Topics