Fitch Releases Updated Report On State Housing Finance Agencies.

Business Editors

NEW YORK--(BUSINESS WIRE)--July 22, 2003

Fitch releases its recent update to the state housing finance agencies (SHFAs) statistical information report, which includes fiscal year 2002 financial results for 50 SHFAs.

Overall, the 2002 financial information shows that SHFAs continue to build on their 2001 capital base. The SHFAs' median debt-to-equity ratio declined to 7.1 times (x), compared with 7.2x last year, the lowest level since Fitch began tracking such measure. When comparing the 2002 SHFAs' results to the prior fiscal year, 36 reported improved adjusted debt-to-equity ratios, nine reported weakened ratios, and five remained the same. Median net operating revenue declined to $14.1 million after several years of improvement. 40 agencies showed decreases in net interest spread, while eight reported increases. Furthermore, 40 agencies experienced decreases in profitability ratios, while ten reported increases.

Information in this report, along with other financial measures and economic indicators are utilized by Fitch to assign a general obligation (GO) rating as to the SHFA's creditworthiness. The GO rating is an overall assessment of credit standing combining the following major credit areas:

-- Current and future-level and quality of the SHFA's financial

resources, leveraging and capital base;

-- Quality and volatility of the SHFA's future revenue stream

based on the risk level of all programs;

-- Management's willingness and ability to use excess resources to

protect the SHFA's long-term credit quality;

-- SHFA's relationship with state government and the public

purpose role it serves.

For a copy of the Fitch report, 'State Housing Finance Agencies' dated July 2003, visit the Fitch Ratings web site at 'www.fitchratings.com' or contact the Ratings Desk at [phone].