Bangkok--7 Jan--Standard & Poor's
Standard & Poor's Ratings Services revised its ratings on various series of the Colorado Housing and Finance Authority's class I adjustable-rate bonds to 'AAA/A-1+' reflecting the substitution of a standby letter of credit (LOC) from Fannie Mae and Freddie Mac on Jan. 6, 2010. The outlook is not meaningful. Standard & Poor's also affirmed its 'AAA' rating on all class I bonds and assigned its 'AAA' underlying rating (SPUR) to all series based on the delivery of the standby LOC from Fannie Mae and Freddie Mac. The outlook is stable.
The rating on the bonds will from this point reflect the higher of the rating of the standby LOC providers or the assets and collateralization of the bond program.
The unenhanced 'AAA' long-term ratings and SPURs reflect:
Substantial overcollateralization, exceeding 114% on the senior class I bonds;
The extremely strong credit quality of the Federal Housing Administration (FHA)-insured, conventionally insured, other insured, and uninsured mortgage loans backing the bonds;
Sufficiency of reserves to cover potential credit and liquidity shortfalls; and
High-quality investments.
As of Oct. 1, 2009, 65% of the loans had FHA insurance, 18% had conventional private insurance, 7% had Veterans Administration guarantees, 2% were insured through the U.S. Rural Development, and 5% were uninsured with loan-to-value of 80% or less. Loan performance reflected that 7.3% were at least 60 days delinquent and another 3.82% were in bankruptcy, foreclosure, or real estate owned.
RELATED RESEARCH
USPF Criteria: Single-Family Whole Loan Programs, June 14, 2007
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.
Information regarding Standard & Poor's 2010 Housing Conference scheduled for February 10-12, 2010 at the Hyatt Regency Grand Cypress Orlando, Florida can be obtained at www.events.standardandpoors.com/housing or by contacting Events Marketing at 212-438-2800.
Media Contact:
Ana Sandoval, New York (1) 212-438-5095,
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Analyst Contacts:
Lawrence Witte, San Francisco (1) 415-371-5037
Karen Fitzgerald, San Francisco (1) 415-371-5023
Key Contacts:
Americas Media Relations: (1) 212-438-6667
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