Fitch Affirms Illinois Housing's GO Debt Pledge at 'A+'.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. affirms Illinois Housing Development Authority's (IHDA IHDA Illinois Housing Development Authority ) general obligation (GO) debt pledge at 'A+'. The rating, while not assigned to any specific class of debt, represents an overall credit assessment of the authority's ability to meet its GO pledge requirements. IHDA continues to report a positive financial position as evidenced by improved leverage ratios and increased returns on assets and equity. Management remains solid. For fiscal year-ended Fiscal Year-End The completion of a one-year, or 12-month, accounting period. Notes: The reason that a company's fiscal year often differs from the calendar year and does not close on Dec 31, is due to the nature of company's needs. June 30, 2005, IHDA's adjusted debt-to-equity ratio debt-to-equity ratio The relationship between long-term funds provided by creditors and funds provided by owners. A firm's debt-to-equity ratio is calculated by dividing long-term debt by owners' equity. Both items are shown on the balance sheet. fell to 5.4 times (x), placing it at the moderate level range for state housing finance agencies (HFAs). The Fitch preliminary 2005 median adjusted debt-to-equity ratio dropped to 5.3x based on 30 agencies reporting. IHDA's total outstanding debt increased slightly to $1.55 billion after four consecutive years of decline. Additionally, IHDA has $223 million of risk sharing debt outstanding in the form of mortgage participation certificates mortgage participation certificate A pass-through security that represents ownership in a pool of conventional mortgages put together by Freddie Mac. (MPCs), up from $192 million in the prior year. IHDA's aggregate risk sharing loss exposure to the MPCs is $199 million in fiscal year 2005 compared to $159 million in fiscal year 2004. Operating margins in fiscal years 2003, 2004, and 2005 were (0.2)%, (4.7)% and 8.8% respectively, returning to profitability in 2005 after falling significantly in 2003 and 2004 due to reduced interest income as a result of declining interest rates. Returns on assets and equity also increased from the previous fiscal year. The authority's $1.98 billion of assets (all proprietary funds) consist of program loans (59%), short-term investments (15%), and long-term investments (25%). Overall, the multifamily program is performing well, while the single-family program delinquencies are slightly below state averages. Other contributing credit factors include the authority's sufficient levels of liquidity and reserves, the quality of its asset base and earnings stream in light of its public purpose mandate and the state's favorable real estate market and the authority's capable management. A full report detailing IHDA's GO pledge is available on the Fitch Ratings web site at www.fitchratings.com. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. 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 Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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