TEXT-S&P affirms 2 CountryPlace Manufactured Housing deals

Tue Dec 4, 2012 5:46pm EST

OVERVIEW
     -- We reviewed two CountryPlace Manufactured Housing Contract Trust 
transactions (series 2005-1 and 2007-1), which are securitizations of 
manufactured housing installment sale contracts.
     -- We affirmed our ratings on the two certificates from series 2005-1 and 
two certificates from  series 2007-1.
    
     Dec. 4 - Standard & Poor's Ratings Services today affirmed its ratings on
two certificates from CountryPlace Manufactured Housing Contract Trust 2005-1
and on two certificates from CountryPlace Manufactured Housing Contract Trust
2007-1 (see rating list). Each transaction is collateralized by manufactured
housing installment sale contracts.

Today's rating actions reflect our revised expected net losses, our analysis 
regarding future collateral performance, and each transaction's structure and 
credit enhancement level. In addition, our analysis incorporated secondary 
credit factors, such as credit stability, payment priorities under various 
scenarios, and sector- and issuer-specific analysis.

We have maintained our initial loss expectation for the series 2005-1 
transaction but increased our loss expectation for the series 2007-1 
transaction (see table 1). We based our views on loss expectations for both 
series on the rate of actual losses incurred to date and our estimates of 
future collateral performance.  

Table 1
Collateral Performance

                                            Initial      Former       Revised
                Pool    60+ days            lifetime     lifetime    lifetime
        Current factor  delinq.   Current   CNL exp.     CNL exp.    CNL exp
Series   month  (%)        (%)     CNL (%)  (%)          (%)              (%)

2005-1      88   45.33    1.18       7.17   13.50       13.50          13.50
2007-1      68   49.07    1.63       8.15   10.00       14.50          17.00
CNL--Cumulative net loss.


Series 2007-1, through 68 months of performance and with a pool factor of 
49.07%, has experienced cumulative gross defaults of 12.06% with a cumulative 
recovery rate of approximately 32%, resulting in cumulative net losses of 
8.15%. Series 2005-1 is more seasoned, with 88 months of performance and a 
pool factor of 45.33%. Series 2005-1's frequency of defaults (10.99%) is 
trending below series 2007-1 while the severity of loss is similar 
(approximately 35% recovery rate), resulting in cumulative net losses of 
7.17%, lower than series 2007-1. 

Despite our higher loss expectation for series 2007-1, the affirmations for 
both series reflect our view that the total credit enhancement available is 
sufficient for each of the affirmed ratings.RELATED CRITERIA AND RESEARCH 

     -- Global Structured Finance Scenario And Sensitivity Analysis: The 
Effects of the Top Five Macroeconomic Factors, Nov. 4, 2011
     -- Manufactured Housing Criteria: The Rating processRELATED CRITERIA AND RESEARCH 

     -- Global Structured Finance Scenario And Sensitivity Analysis: The 
Effects of the Top Five Macroeconomic Factors, Nov. 4, 2011
     -- Manufactured Housing Criteria: The Rating process For Manufactured 
Housing Transactions, Sept.1, 2004
     -- Manufactured Housing Criteria: Structural Analysis of Manufactured 
Housing Transactions, Sept. 1, 2004
     -- Manufactured Housing Criteria: Credit Analysis of Manufactured Housing 
Transactions, Sept. 1, 2004
     -- Credit FAQ: The Interaction Of Bond Insurance And Credit Ratings - 
Structured Finance Update, Feb. 26, 2008.
 
RATINGS AFFIRMED

CountryPlace Manufactured Housing Contract Trust 
Series        Class            Rating
2005-1        A-3              A- (sf)
2005-1        A-4              A- (sf)
2007-1        A-3              BBB+ (sf)
2007-1        A-4              BBB+ (sf)
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