Fitch Rates Maryland CDA's $170.1MM Resi Rev Bnds 'AA/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 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 a rating of 'AA/F1+' to the Maryland Community Development Administration's (CDA (1) (Compact Disc Audio) The compact disc file extension that is seen on the computer in Explorer or some other file manager. CDA files are actually pointers to the locations of the individual tracks on the CD medium. See CD-DA. ) $170.1 million residential revenue bonds, series 2004 J and K. Additionally, Fitch affirms the 'AA' rating on the $678.5 million outstanding residential revenue bonds and the 'AA/F1+' rating on the $280.3 million outstanding residential revenue bonds 2004 series C and F and 2003 series C, D and E. In September the CDA sold, but have not yet closed, $40.0 million 2004 series G and H (rated 'AA' by Fitch) and $20.0 million 2004 series I bonds (rated 'AA/F1+' by Fitch). The 2004 series J and K bonds are expected to sell this week through negotiation by a Legg Mason Founded in 1899, Legg Mason, Inc. (NYSE: LM) is a leading Global Asset Management Firm that serves the institutional, mutual fund and wealth management markets. The firm is headquartered in Baltimore, Maryland, and is located on Lombard and Charles Streets in the Legg Mason Wood Walker Incorporated led syndicate. The 2004 series G, H, I, J, and K bonds are expected to close on or about Nov. 10, 2004. The 2004 series J and K bonds are on parity with all outstanding residential revenue bonds. CDA is a division of the state's department of housing and community development (DHCD DHCD Department of Housing & Community Development DHCD Deck Hatch Closed and Dogged ). The bonds' 'AA' long-term rating reflects the security of the residential revenue bond resolution. Fitch's 'AA' rating of the resolution is based on the current portfolio composition, the recent inclusion of only fully insured or guaranteed loans, and the required reserve levels and liquidity, as well as the administration's successful management track record and established program oversight abilities. The $170.1 million 2004 series J and K bonds, dated the date of delivery, are subject to mandatory tender on Dec. 15, 2005 and may be redeemed at an earlier date on or after July 1, 2005 as designated by the CDA. Bond proceeds will be used to refund prior bonds issued under this resolution and to fund a required reserve. Available funds from the refunded bonds will be transferred to these series and are expected to be invested in U.S. government or agency obligations in an amount and maturity approximately matching those of the bonds through the mandatory tender date. The short term 'F1+' rating reflects the sufficiency of available funds to pay interest and principal upon mandatory tender. All loans purchased under the single family program and transferred from bond proceeds will be for single-family homes insured by the Federal Housing Administration Federal Housing Administration (FHA) Federally sponsored agency chartered in 1934 whose stock is currently owned by savings institutions across the United States. The agency buys residential mortgages that meet certain requirements, sells these mortgages in packages, and insures (FHA See Federal Housing Administration. FHA See Federal Housing Administration (FHA). ) or guaranteed by the U.S. Department of Veterans Affairs (VA) or the U.S. Department of Agriculture through its Rural Development Guaranteed Rural Housing Loan Program (RD). VA and RD loans are not expected to constitute a significant share of the portfolio. For information regarding CDA's first-time homebuyer First-Time Homebuyer An IRA owner who is exempt from the early-distribution penalty (which applies to IRA distributions that occur before the IRA owner reaches age 59.5) for distributing funds from his or her IRA to buy, build, or rebuild a home when having had no interest in a program, see Fitch's research report on Maryland CDA, 'Maryland Community Development Administration,' dated Sept. 23, 2004, available on the Fitch Ratings web site at www.fitchratings.com. |
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