Bangkok--5 Oct--Standard & Poor's
The ratings on U.S. housing finance agencies' (HFAs) multifamily bonds continue to remain strong as housing market pressures subside, Standard & Poor's Ratings Services said today in a report.
"Rising overcollateralization levels, low delinquencies on the mortgages, and high mortgage debt service coverage levels show, in our view, that multifamily programs have performed well despite the market pressures experienced in the U.S.," said Standard & Poor's credit analyst Mikiyon Alexander. "Notwithstanding this performance, we are closely following the ratings of all HFA bonds to assess overcollateralization ratios," he said in the article, "HFA Multifamily Bond Indentures Show Improvement Despite Sluggish Recovery In The U.S. Economy."
Most HFAs have experienced minimal delinquencies and few actual losses in their multifamily loan portfolios. They have also managed risk through what we consider active oversight, strong asset management, and prudent financial management of their multifamily loan programs.
In our view, HFA multifamily parity indentures continue to build strength. We believe this is illustrated by the quality of collateral, demand for housing, the strong reserve levels, and strong management.
The reports are available to RatingsDirect subscribers on the Global Credit Portal at www.globalcreditportal.com and RatingsDirect subscribers at www.ratingsdirect.com. If you are not a RatingsDirect subscriber, you may purchase copies of these reports by calling (1) 212-438-7280 or sending an e-mail to
[email protected]. Ratings information can also be found on Standard & Poor's public Web site by using the Ratings search box located in the left column at www.standardandpoors.com. Members of the media may request copies of these reports by contacting the media representative provided.
Media Contact:
Ana Sandoval, New York (1) 212-438-5095,
[email protected]
Analyst Contacts:
Mikiyon Alexander, New York (1) 212-438-2083
Valerie White, New York (1) 212-438-2078