Fitch Rates Idaho Housing's 2005F Class I V-R Bonds 'AAA/F1+'.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 assigns the following ratings to Idaho Housing & Finance Association: --$18.9 million single-family mortgage bonds, 2005 series F class I variable-rate bonds 'AAA/F1+'; --$5.1 million series E class I fixed-rate bonds 'AAA'. --$1 million class II bonds 'AA' --$5 million class III bonds 'A+'. The 2005 series F bonds are the 15th offering issued under a new general trust indenture dated Feb. 1, 2003. The bonds are expected to close on Jan. 5, 2006, through a syndicate led by Lehman Brothers Lehman Brothers Holdings Inc. (NYSE: LEH), founded in 1850, is a diversified, global financial services firm. It is a participant in investment banking, equity and fixed income sales, research and trading, investment management, private equity, and private banking. . Fitch also affirms the outstanding $400 million, 2005 series A through E, 2004 series A through D and 2003 series A through E class I (variable-rate and fixed-rate), class II and class III bonds at 'AAA/F1+', 'AAA','AA' and 'A+', respectively. The $30 million 2005 series F single-family mortgage bonds are being issued under the series F supplemental indenture that pledges mortgage revenues, investment earnings, reserves and other trust funds to secure the bonds. Additionally, the class III bonds are secured by the association's general obligation (GO) pledge for payments of scheduled interest and principal at final maturity. The 'AAA' and 'AA' ratings on the bonds reflect the credit quality of the trust estate's collateral, the adequacy of projected revenues to pay debt service and the 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 provided by the 20% debt subordination at time of issuance underlying all of the class I bonds and the 17% debt subordination underlying the class II bonds. Additionally, the series F class I and class II bonds have minimum asset requirements of 119% and 112%, respectively. A portion of the class I bonds will be sold initially as variable-rate tender option bonds. The short-term 'F1+' rating assigned to the class I series F variable-rate bonds, reflects the availability of a standby bond purchase agreement provided by Lloyds TSB Lloyds TSB Group plc (LSE: LLOY) is a banking and insurance group in the United Kingdom. It was formed in 1995 by the merger of Lloyds Bank and the Trustee Savings Bank (TSB). The Group's head office is at 25 Gresham Street, London. Bank (rated 'AA+/F1+' by Fitch). The class I bonds have asset parity maintenance requirements directing revenues to be used to call bonds of that class prior to paying debt service of the next junior class. While the class III bonds are secured by the assets and revenues of the trust indenture, their rating reflects the 'A+' rating assigned to the 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. of the association's GO pledge. The GO rating is based on: favorable overall financial and portfolio performances; adequate levels of liquidity and excess reserves Excess reserves Amount of reserves held by an institution in excess of its reserve requirement and required clearing balance. Also see reserves. Excess reserves Actual reserves that exceed required reserves. ; a moderate 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. when compared with other state housing finance agencies; and management's expertise in carrying out the association's public purpose mandate while protecting its long term credit quality. 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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