S&P Gives Georgia Housing Bonds AAA Rating

ATLANTA-Citing a stable market outlook and strong collateral, Standard & Poor’s Ratings Services has placed a AAA rating on Georgia Housing and Finance Authority’s $32.2-million mortgage revenue bonds series 2004A. The state agency issued the bonds to acquire new mortgage loans, receive a small refund and pay the issuance costs of the bonds.

Analyst Dominic De Cayette in S&P’s New York office, says “The rating reflects the extremely strong credit quality of the collateral securing the bonds–a pool of mortgages consisting primarily of Federal Housing Authority-insured or Veterans Administration-guaranteed loans; fully funded reserves and sufficient liquidity; the very high credit quality of insurance supporting the mortgages; the extremely strong credit quality of the investments; and cash flow sufficiency demonstrating ample loss coverage protection at the AAA level.”

As of Nov. 30, 2003, delinquencies over 60 days amounted to 6.87% of the Georgia Authority’s portfolio. Foreclosures totaled 4.57%.