Fitch Releases Updated State Housing Fin Agencies Financial Rpt.Business Editors NEW YORK--(BUSINESS WIRE)--July 30, 2002 Fitch releases its recent update to the state housing finance agencies (SHFA SHFA Sydney Harbour Foreshore Authority (Australia) ) statistical information report, which includes fiscal year 2001 financial results for 50 SHFAs. The report is available immediately at 'www.fitchratings.com'. Overall, the 2001 financial information shows that SHFAs continue to build on their favorable 2000 results. The SHFAs' median 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. declined to 7.2 times (x) compared with 8.0x last year, and is the lowest level since Fitch began tracking such measure. When comparing the 2001 SHFAs' results to the prior fiscal year, 43 reported improved adjusted debt-to-equity ratios, 4 reported weakened ratios, and 3 remained the same. Additionally, the median net operating revenue operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. (slightly lower when excluding the positive GASB GASB Governmental Accounting Standards Board 31 adjustment) remained strong after several years of improvement. Thirty-two agencies showed increases in net interest spread, while 18 reported declines. Furthermore, 40 agencies experienced increases in profitability ratios Profitability ratios Ratios that focus on how well a firm is performing. Profit margins measure performance with relation to sales. Rate of return ratios measure performance relative to some measure of size of the investment. , while 10 experienced declines. Information in this report, along with other financial measures and economic indicators Economic indicators The key statistics of the economy that reveal the direction the economy is heading in; for example, the unemployment rate and the inflation rate. are utilized by Fitch to assign a general obligation (GO) rating as to the SHFA's 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. . 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 2002, please visit our website or contact market services at 1-212-908-0500. |
|
Printer friendly
Cite/link
Email
Feedback
Reader Opinion