Fitch Releases Updated State Housing Finance Agencies Report.

Business Editors

NEW YORK--(BUSINESS WIRE)--Jan. 30, 2003

Fitch Ratings has published its report on fiscal year-2002 financial results for 33 State Housing Finance Agencies (SHFAs). The report is available on the Fitch Ratings web site at 'www.fitchratings.com.'

Overall, the 2002 financial information shows a slight improvement in capital base position for 33 SHFAs despite declining profitability. When comparing SHFAs' 2002 results to the prior fiscal year, 24 reported improvements in adjusted debt-to-equity ratios, 7 reported weakened ratios, and ratios for two SHFAs were unchanged. The median debt-to-equity ratio is 7.1 times (x), slightly lower than last year. Almost all (29) of the reporting SHFAs experienced declines in net interest spread, primarily due to the steady decline in interest earned and increased prepayment activity.

Information in this report, along with other financial measures and economic indicators are utilized by Fitch to assign a general obligation (GO) rating to SHFAs. 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,' visit 'www.fitchratings.com' or contact the Ratings Desk at 800/893-4824.