Fitch Rates Utah Hsg Corp $19MM 2002B Class I Var-Rate Bonds 'AAA/F1+'.Business Editors NEW YORK--(BUSINESS WIRE)--April 9, 2002 Fitch rates Utah Housing Corporation's (the corporation) $19 million single family mortgage bonds, 2002 series B class I variable-rate bonds, 'AAA/F1+'. In addition, Fitch rates the $1 million class II bonds and $5 million class III bonds, 'AA' and 'AA-', respectively, and affirms its general obligation (GO) debt pledge at 'AA-'. The current offering is the eighth sale issued under a general 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. adopted by the corporation on May 1, 2000. The bonds are expected to close concurrently with the 2002 series A bonds (rated April 8, 2002) on April 18, 2002, 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 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 the ratings on the outstanding 2001 series A and 2000 series C through G $137.1 million class I bonds at 'AAA/F1+' and 'AAA',$8.4 million class II bonds at 'AA' and $27.5 million class III bonds at 'AA-'. The $25 million 2002 series B single family mortgage bonds are being issued under the general trust 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 corporation's GO pledge for payments of scheduled interest and principal at final maturity. The 'AAA' and 'AA' ratings 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 30% and 24% debt subordination underlying the class I and class II bonds, respectively. The class I bonds will be sold initially as variable-rate tender bonds. The short-term 'F1+' rating assigned to the class I variable-rate bonds, reflects the availability of a standby standby Medtalk adjective Referring to the immediate availability of a certain specialist–anesthesiologist, surgeon, who can be deployed in a medical emergency. Cf Concurrent. bond purchase agreement provided by Westdeutsche Landesbank Girozentrale (rated 'AAA/F1+' by Fitch). Additionally, both the class I and class II 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 'AA-' 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 corporation's GO pledge. The GO rating is based on the corporation's 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. , and lower than average leverage ratios. |
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