Fitch Rates Alaska Housing's $87.1MM HDBs 2002 A-C Underlying 'AA+'.Business Editors NEW YORK--(BUSINESS WIRE)--July 19, 2002 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. assigns Individuals to whom property is, will, or may be transferred by conveyance, will, Descent and Distribution, or statute; assignees. The term assigns is often found in deeds; for example, "heirs, administrators, and assigns to denote the assignable nature of an underlying rating of 'AA+' to Alaska Housing Finance Corp.'s (AHFC AHFC American Honda Finance Corporation AHFC Adaptive High Frequency Controller ) housing development bonds (HDBs), $87.1 million 2002 series A, B and C and assigns a 'AA+/F1+' underlying rating to the $37.9 million 2002 series D variable-rate bonds. The bonds are issued pursuant to a trust indenture An agreement declaring the benefits and obligations of two or more parties, often applicable in the context of Bankruptcy and bond trading. The term indenture primarily describes secured contracts and has several applications in U.S. law. and a supplemental indenture dated Dec. 1, 1991 and July 1, 2002, respectively. The bonds are expected to be insured by MBIA MBIA Montana Building Industry Association MBIA Municipal Bond Insurance Association MBIA Michigan Boating Industries Association MBIA Municipal Bond Investors Assurance MBIA Massachusetts Brain Injury Association MBIA Maryland Business Incubation Association , whose insurer financial strength is rated 'AAA' by Fitch fitch: see polecat. . In addition, Fitch affirms the outstanding ratings on the Housing Development Bonds, 2000 series A and B at 'AA+/F1+', the 1999 series A, B and C bonds at the underlying 'AA+' ('AAA' rated for the MBIA insurer financial strength rating), and the 1997 series A, B, and C bonds at 'AA+'. A portion of the 2002 series B bond proceeds ($8.7 million) will be used, within 90 days, to refund 1991A and 1992A housing development bonds outstanding. The 2002 series A and a small portion of the series B bonds will be used to make mortgage loans to individual borrowers for construction, acquisition and/or renovation of multifamily complexes, while the 2002 series C and D bond proceeds ($107.9 million) will be used to refund certain obligations of AHFC including certain expenditures for governmental purpose projects. The bonds are general obligations (GO) of AHFC, rated 'AA+/F1+' by Fitch. Although a portion of the bonds is secured by a pledge of mortgage payments from the housing projects, the bonds' underlying rating reflects the primary security provided by the GO debt pledge of AHFC. The series D bonds are variable-rate tender option bonds and initially will bear interest at a weekly rate. The short term 'F1+' rating assigned to the bonds reflects the strong credit quality of AHFC's ability to provide liquidity on a timely basis in the event tendered bonds are not remarketed. AHFC has more than $350 million of high-quality investments in its unrestricted general account, a $150 million unused credit facility for corporate purposes and other liquidity swap arrangements Swap arrangements Short-term reciprocal lines of credit between the Federal Reserve and 14 foreign centeral banks as well as the Bank for International Settlements. Through a swap transactions, the Federal Reserve can, in effect, borrow foreign currency in order to purchase dollars for various other corporate variable-rate bonds. AHFC'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. |
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