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 the fiscal year ended June 30, 2006, 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 4.8 times (x), placing it at the moderate level range for state housing finance agencies (HFAs). The Fitch preliminary 2006 median adjusted debt-to-equity ratio is estimated to be 5.8x based on 30 agencies reporting. IHDA's total outstanding debt decreased slightly to $1.4 billion. IHDA has $256 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 $232 million in the prior year. IHDA's aggregate risk- sharing loss exposure to the MPCs is $205 million in fiscal 2006 compared to $199 million in fiscal 2005. Operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: in fiscals 2004, 2005, and 2006 were (4.7%), 8.8%, and 10.0% respectively, continuing the authority's return to profitability in 2006 following positive 2005 results 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 $1.99 billion of assets (all proprietary funds) consist of program loans (60%), short-term investments (9%), and long-term investments (27%). Overall, the multifamily program is performing well, while the single-family program loans are demonstrating delinquencies that are slightly above state averages. Other contributing credit factors that support the 'A+' rating 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, the state's favorable real estate market, and the authority's capable management. 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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