S&P assigns ‘AA+’ Rating to Pennsylvania Housing Finance’s mortgage revenue bonds

SAN FRANCISCO: S&P Global Ratings has assigned ‘AA+’ long-term rating to the Pennsylvania Housing Finance Agency’s (PHFA) series 2019-131A (non-alternative-minimum tax) and series 2019-131B (alternative-minimum tax) single-family mortgage revenue bonds.

These bonds are issued under PHFA’s single-family parity indenture.

At the same time, S&P Global Ratings affirmed its ‘AA+’ long-term rating and various dual ratings on bonds outstanding in the indenture. The outlook, where applicable, is stable.

“The ‘AA+’ rating reflects our opinion of PHFA’s very strong loan portfolio credit quality, cash flows demonstrating sufficient asset-to-liability parity, and mortgage-payment and investment-earnings revenue that are sufficient to pay debt service and fees until maturity,” said S&P Global Ratings credit analyst Aulii Limtiaco.

The 2019-131 bond proceeds will be used, along with PHFA’s contributed funds, to finance the purchase of new mortgage loans with terms of 30 years and expected interest rates ranging from 3.375% to 4.5% for single-family low- and moderate-income residences, redeem a portion of PHFA single-family bonds outstanding, and pay issuance costs.

The stable outlook reflects S&P Global Ratings’ opinion PHFA will likely continue to provide high bondholder security by maintaining federal insurance or guarantees for most single-family loans.

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