Standard & Poor's Ratings Services revised its ratings on various series of the Utah Housing Corporation's (UHC) class I adjustable-rate single-family mortgage bonds to 'AAA/A-1+' reflecting the substitution of a standby letter of credit (LOC) from Fannie Mae and Freddie Mac on Dec. 30, 2009. Standard & Poor's also affirmed its 'AAA' rating on all class I bonds and assigned its 'AAA' underlying ratings (SPURs) 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 'AAA' rating long-term reflects extremely strong asset-to-liability parity ratios that exceeds 115% on the senior class I bonds; the extremely strong credit quality of the single-family mortgage loans backing the bonds; the sufficiency of reserves to cover potential credit and liquidity shortfalls; and high-quality investments," said Standard & Poor's credit analyst Lawrence Witte.
As of June 30, 2009, 98% of the loans had Federal Housing Administration insurance, and 2% had Veteran's Administration guarantees. Loan performance reflected that 4.34% at least 60 days delinquent, including 0.77% in foreclosure.
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.
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
Media Contact:
Ana Sandoval, New York (1) 212-438-5095,
[email protected]
Analyst Contacts:
Lawrence Witte, San Francisco (1) 415-371-5037
Moraa Andima, New York (1) 212-438-2734
Key Contacts:
Americas Media Relations: (1) 212-438-6667
media_
[email protected]
Americas Customer Service: (1) 212-438-7280
[email protected]