Fitch rates the following Idaho Housing and Finance
Association bonds as follows:
-- $18.7 million single-family mortgage bonds, 2006 series A class I 2037 term bonds at 'AAA/F1+';
-- $5.3 million class I fixed-rate bonds 'AAA';
-- $1 million class II bonds 'AA';
-- $5 million class III bonds 'A+'.
Fitch also affirms the outstanding $411 million bonds:
-- 2005 series A, B, C, D, E and F; 2004 series A, B, C, and D; and 2003 series A, B, C, D and E class I bonds at 'AAA';
-- 2005 series A, B, C, D, E and F; 2004 series A, B, and C; and 2003 series A, B, C, D and E class II bonds at 'AA';
-- 2005 series A, B, C, D, E and F; 2004 series A, B, C, and D; and 2003 series A, B, C, D and E class III bonds at 'A+'.
The 2006 series A bonds are the 16th offering issued under a general trust indenture dated Feb. 1, 2003. The bonds are expected to close on March 23, 2006, through a syndicate led by Lehman Brothers.
The $30 million 2006 series A single-family mortgage bonds are being issued under a supplemental indenture that pledges mortgage revenues, investment earnings, reserves and other trust funds to secure the bonds. Additionally, the class III bonds are secured by the association's general obligation (GO) pledge for payments of scheduled interest and principal at final maturity. The 'AAA' and 'AA' ratings on the bonds reflect the credit quality of the trust estate's collateral, the adequacy of projected revenues to pay debt service, and the credit enhancement (CE) provided by the 20% debt subordination at time of issuance underlying all of the class I bonds, and the 17% debt subordination underlying the class II bonds. Additionally, the series A class I and II bonds have minimum asset requirements of 119% and 112%, respectively.
The class I 2037 term bonds are being issued as variable-rate demand bonds. The short-term 'F1+' rating on the class I 2037 term bonds is based on the liquidity support provided by a standby bond purchase agreement (SBPA) issued by Lloyds TSB Bank, plc, acting through its New York Branch. The SBPA provides for payment of purchase price of tendered bonds and is sized to cover the principal portion of the purchase price and 186 days of interest at a rate of 12% based on a 360-day year. The short-term rating on the bonds will expire on March 23, 2009, the stated expiration date of the SBPA, unless such date is extended, or upon any earlier expiration or termination of the SBPA.
The class I 2037 term bond will be issued with an initial interest rate, extending to March 29, 2006. Thereafter, such bonds will be in a weekly interest rate mode, but may be converted to a daily, monthly, quarterly, auction, semiannual or fixed interest rate mode. During the daily and weekly modes, holders have the option to tender their bonds for purchase on any business day with prior notice. During the other variable interest rate modes, bondholders have the option to tender bonds on the effective date of a new interest rate, following specified advance notice. These bonds are also subject to mandatory tender: (i) upon conversion of the interest rate mode, except when converting between daily and weekly interest rate modes; and (ii) on the fifth business day prior to the expiration of the SBPA.
The class I bonds have asset parity maintenance requirements directing revenues to be used to call bonds of that class prior to paying debt service of the next junior class. While the class III bonds are secured by the assets and revenues of the trust indenture, their rating reflects the 'A+' rating assigned to the creditworthiness of the association's GO pledge.
The GO rating is based on: favorable overall financial and portfolio performances; adequate levels of liquidity and excess reserves; a moderate debt-to-equity ratio when compared with other state housing finance agencies; and management's expertise in carrying out the association's public purpose mandate while protecting its long-term credit quality.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
-- $18.7 million single-family mortgage bonds, 2006 series A class I 2037 term bonds at 'AAA/F1+';
-- $5.3 million class I fixed-rate bonds 'AAA';
-- $1 million class II bonds 'AA';
-- $5 million class III bonds 'A+'.
Fitch also affirms the outstanding $411 million bonds:
-- 2005 series A, B, C, D, E and F; 2004 series A, B, C, and D; and 2003 series A, B, C, D and E class I bonds at 'AAA';
-- 2005 series A, B, C, D, E and F; 2004 series A, B, and C; and 2003 series A, B, C, D and E class II bonds at 'AA';
-- 2005 series A, B, C, D, E and F; 2004 series A, B, C, and D; and 2003 series A, B, C, D and E class III bonds at 'A+'.
The 2006 series A bonds are the 16th offering issued under a general trust indenture dated Feb. 1, 2003. The bonds are expected to close on March 23, 2006, through a syndicate led by Lehman Brothers.
The $30 million 2006 series A single-family mortgage bonds are being issued under a supplemental indenture that pledges mortgage revenues, investment earnings, reserves and other trust funds to secure the bonds. Additionally, the class III bonds are secured by the association's general obligation (GO) pledge for payments of scheduled interest and principal at final maturity. The 'AAA' and 'AA' ratings on the bonds reflect the credit quality of the trust estate's collateral, the adequacy of projected revenues to pay debt service, and the credit enhancement (CE) provided by the 20% debt subordination at time of issuance underlying all of the class I bonds, and the 17% debt subordination underlying the class II bonds. Additionally, the series A class I and II bonds have minimum asset requirements of 119% and 112%, respectively.
The class I 2037 term bonds are being issued as variable-rate demand bonds. The short-term 'F1+' rating on the class I 2037 term bonds is based on the liquidity support provided by a standby bond purchase agreement (SBPA) issued by Lloyds TSB Bank, plc, acting through its New York Branch. The SBPA provides for payment of purchase price of tendered bonds and is sized to cover the principal portion of the purchase price and 186 days of interest at a rate of 12% based on a 360-day year. The short-term rating on the bonds will expire on March 23, 2009, the stated expiration date of the SBPA, unless such date is extended, or upon any earlier expiration or termination of the SBPA.
The class I 2037 term bond will be issued with an initial interest rate, extending to March 29, 2006. Thereafter, such bonds will be in a weekly interest rate mode, but may be converted to a daily, monthly, quarterly, auction, semiannual or fixed interest rate mode. During the daily and weekly modes, holders have the option to tender their bonds for purchase on any business day with prior notice. During the other variable interest rate modes, bondholders have the option to tender bonds on the effective date of a new interest rate, following specified advance notice. These bonds are also subject to mandatory tender: (i) upon conversion of the interest rate mode, except when converting between daily and weekly interest rate modes; and (ii) on the fifth business day prior to the expiration of the SBPA.
The class I bonds have asset parity maintenance requirements directing revenues to be used to call bonds of that class prior to paying debt service of the next junior class. While the class III bonds are secured by the assets and revenues of the trust indenture, their rating reflects the 'A+' rating assigned to the creditworthiness of the association's GO pledge.
The GO rating is based on: favorable overall financial and portfolio performances; adequate levels of liquidity and excess reserves; a moderate debt-to-equity ratio when compared with other state housing finance agencies; and management's expertise in carrying out the association's public purpose mandate while protecting its long-term credit quality.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.