Alaska HFC $56.8M Bonds 1999 Sers A,B,C Rated By Fitch IBCA.NEW YORK--(BUSINESS WIRE)--Dec. 1, 1999-- The Alaska Housing Finance Corporation's (AHFC AHFC American Honda Finance Corporation AHFC Adaptive High Frequency Controller ) $56.8 million housing development bonds, 1999 series A, B and C, are rated 'AA' by Fitch IBCA IBCA International Braille Chess Association IBCA Institute of Burial and Cremation Administration IBCA Integrated Business Communications Alliance IBCA International Barbeque Cookers Association IBCA Department of Interior Board of Contract Appeals . In addition, the 'AA' rating on the $46.9 million outstanding housing development bonds, 1997 series A, B and C, is affirmed. The new bonds are expected to be sold on December 2, 1999, as a negotiated transaction through a syndicate led by Newman and Associates, Inc. Proceeds from the $6.8 million series A and B bonds will be used to fund mortgage loans for six projects under AHFC's multifamily, special needs and congregate con·gre·gate tr. & intr.v. con·gre·gat·ed, con·gre·gat·ing, con·gre·gates To bring or come together in a group, crowd, or assembly. See Synonyms at gather. adj. 1. Gathered; assembled. 2. housing loan program. Proceeds from the $50 million series C bonds will be used to finance, or reimburse re·im·burse tr.v. re·im·bursed, re·im·burs·ing, re·im·burs·es 1. To repay (money spent); refund. 2. To pay back or compensate (another party) for money spent or losses incurred. the corporation for financing, expenditures for state governmental-purpose projects. Although a portion of the bonds are secured by a pledge of mortgage payments from the housing projects, the bonds' rating reflects the primary security provided by the corporation's general obligation (GO) debt pledge. AHFC's general obligation debt pledge is rated 'AA' by Fitch IBCA. The corporation's GO debt rating is based on its strong financial position, favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. operational and financial results, successful management track record, and sufficient liquidity and reserves. Credit concerns remain centered on the geographic concentration of the AHFC's consolidated loan portfolio and the real estate market's vulnerability to the state's oil-dependent economy. Additionally, concerns relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the ongoing use of the corporation's surplus funds Surplus funds Cash flow available after payment of taxes in a project. -- to make direct payments to the state, fund capital appropriations for other government entities, and prospectively, pay debt service on state government project bonds -- subsided in the last few years but have resurfaced recently in terms of their potential impact on the corporation's GO rating. In addition to the 1999 housing development bonds, other debt currently secured by the general obligation pledge includes: $87 million state capital project bonds, 1999 series A, and $187 million general housing purpose bonds (each rated 'AA'); $90 million housing development bonds ($47 million of which is rated 'AA'); $33 million governmental purpose bonds, 1997 series A (rated 'AA/F1+'); and, the corporation's commercial paper program ($106 million rated 'F1+'). In addition, the GO pledge will secure $40 million of state building lease bonds and $104 million of state capital project bonds, 1999 series B, which the corporation expects to close before calendar year end 1999. For additional information regarding the corporation's GO creditworthiness Creditworthiness The condition in which the risk of default on a debt obligation by that entity is deemed low. Creditworthiness Eligibility of an individual or firm to borrow money. , please see Fitch IBCA's research "Alaska Housing Finance Corporation" dated Nov. 23, 1999 and Nov. 16, 1999 available at http://www.fitchibca.com. |
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