Standard & Poor's Ratings Services revised its rating on Colorado Housing and Finance Authority's class I adjustable-rate single-family mortgage revenue bonds, series 2006B, 2006C, and 2007A, to 'AAA/A-1+' from 'AAA/A-2', reflecting the substitution of a standby letter of credit (LOC) from Fannie Mae and Freddie Mac on Dec. 16, 2009.
Standard & Poor's also affirmed its 'AAA/A-1+' rating on the authority's series 2003B-1 bonds based on the delivery of the standby LOC from Fannie Mae and Freddie Mac.
In addition, Standard & Poor's affirmed its 'AAA/A-1+' rating on the authority's series 2002A, 2003C-1, 2006A-1, 2006A-2, 2006A-3, 2006B-2, 2006B-3, 2006C-2, 2007A-2, 2002B, and 2008A bonds.
Standard & Poor's also affirmed its 'AAA/A-1' rating on the authority's series 2003C, 2004A, 2004B, 2005A, 2005B, 2006A, 2007B, 2007B-1, and 2008A bonds. Standard & Poor's also assigned its 'AAA' underlying rating (SPUR) to the authority's series 2001B-3, 2003 B-2, 2006B, 2006C, and 2007A bonds.
Finally, Standard & Poor's affirmed its 'AAA' long-term rating on the authority's class I bonds, which reflects 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.
The outlook on the long-term component of the ratings is stable.
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 7.3% of loans were at least 60 days' delinquent, and another 3.82% were in bankruptcy or foreclosure, or were 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
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