Contra Costa Cnty, CA Hsg Rev Bnds Rtd 'AAA' by S&P.NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 7/30/98-- Standard & Poor's today assigned its triple-'A' rating to Contra Costa Contra Costa can refer to:
The bonds are scheduled to sell Aug. 20, 1998. The rating reflects: -- FNMA FNMA abbr. Federal National Mortgage Association Noun 1. FNMA - a federally chartered corporation that purchases mortgages Fannie Mae, Federal National Mortgage Association credit enhancement Credit Enhancement A method whereby a company attempts to improve its debt or credit worthiness. Notes: Credit enhancements take many different forms. An example of a credit enhancement would be conversion rights added on to a debt instrument in order to lower the issuing through a collateral agreement and mortgage-backed security Noun 1. mortgage-backed security - a security created when a group of mortgages are gathered together and bonds are sold to other institutions or the public; investors receive a portion of the interest payments on the mortgages as well as the principal payments; guarantee; -- Triple-'A' rated investments; and -- Cash flows evidencing the full and timely payment of debt service and program fees. Bond proceeds will be used to fund a $7 million mortgage, which is initially backed by a FNMA collateral agreement upon closing on the bonds. FNMA pledges under the collateral agreement to cover missed mortgage payments and any shortfalls following an involuntary mortgage prepayment, or acceleration of bond maturities. FNMA's collateral agreement extends to all trust estate funds deemed a preference and to funds subject to the stay provisions under the U.S. Bankruptcy Code Bankruptcy Code may refer to:
Cash flows are lagged 30 days and demonstrate sufficiency of assets and revenues for full and timely debt service plus fees through final bond maturity. Bonds are subject to optional redemption beginning April 1, 2009 at a declining premium through maturity. The bonds bear a fixed rate of interest until final maturity and are subject to optional and mandatory redemptions, including mandatory sinking funds sinking fund, sum set apart periodically from the income of a government or a business and allowed to accumulate in order ultimately to pay off a debt. A preferred investment for a sinking fund is the purchase of the government's or firm's bonds that are to be paid and prepayments of the mortgage, Standard & Poor's said. -- CreditWire
CONTACT: Lawrence Witte, San Francisco, 415/765-5037
Peter Block, San Francisco, 415/765-5044
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