Bangkok--22 Dec--Standard & Poor's
Standard & Poor's Ratings Services raised its rating on 20 series of Wyoming Community Development Authority (WCDA)'s housing revenue bonds to 'AAA/A-1+' from 'AA+/A-1+', reflecting a substitution of the enhancement (please see list below). We expect that on Dec. 21, 2009 (the substitution date), the existing enhancements will be terminated and replaced under the U.S. Treasury's Temporary Credit and Liquidity Program (TCLP). Under TCLP, one master irrevocable standby temporary credit and liquidity facility (C & L facility), issued by Fannie Mae and Freddie Mac (collectively, the GSEs) in favor of the trustee, will support the 20 series of bonds. Standard & Poor's also assigned its 'AA+' underlying rating (SPURs) to the 20 series of upgraded bonds, and affirmed its 'AA+' rating on all other bonds outstanding under the indenture. The outlook on the SPUR is stable.
After the substitution date, the GSEs will provide both credit and liquidity support for both tenders and scheduled bond payments. The new support is expected to expire on Dec. 21, 2012 and, as currently written, does not allow for extension. The bonds will be remarketed in a variable-rate weekly mode. If a bondholder elects to tender its bonds, it must provide seven days' notice of such intent.
It is anticipated that the GSE C & L facility will be delivered on Dec. 21, 2009 for the following bond series issued under the 1994 housing revenue bond indenture:
2001 series 7
2002 series 8
2003 series 4
2004 series 3
2004 series 6
2004 series 9
2004 series 11
2005 series 2
2005 series 4
2005 series 7
2006 series 2
2006 series 5
2006 series 7
2006 series 9
2007 series 2
2007 series 4
2007 series 6
2007 series 8
2007 series 11
2008 series 2
RELATED RESEARCH
USPF Criteria: "Single-Family Whole Loan Programs," June 14, 2007
USPF Criteria: "New Discounts Reflect Changes To Mortgage Insurer Ratings In the Municipal Housing Sector," Oct. 29, 2009
USPF Criteria: "Assumptions: Update to Cash Flow Analysis for Public Finance Housing Bonds," March 3, 2009
USPF Criteria: "S&P Cuts Minimum Reinvestment Rates For U.S. Structured And Muni Housing Bonds," Oct. 31, 2008
Criteria: "Revised U.S. RMBS Interest Rate Assumptions For October 2009," Aug. 6, 2009
Criteria: Methodology And Assumptions: Approach To Evaluating Letter Of Credit-Supported Debt, July 6, 2009
Complete ratings information is available to RatingsDirect on the Global Credit Portal subscribers at www.globalcreditportal.com and RatingsDirect subscribers at www.ratingsdirect.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com. Use the Ratings search box located in the left column.
Media Contact:
Ana Sandoval, New York (1) 212-438-5095,
[email protected]
Analyst Contacts:
Karen Fitzgerald, San Francisco (1) 415-371-5023
Lawrence Witte, San Francisco (1) 415-371-5037