Fitch Rts $12.8MM Vermont Hsg Fin Agency Multipurpose VRBs 2007 Ser A 'AAA/F1+'.

NEW YORK -- Fitch Ratings (Fitch) has assigned a rating of 'AAA/F1+' to the $12,800,000 Vermont Housing Finance Agency multipurpose variable-rate bonds 2007 series A, due May 1, 2037. The 'AAA' long-term rating assigned to the bonds is based on a municipal bond insurance policy issued by Financial Security Assurance Inc., which insures scheduled payments of principal and interest on the bonds. The 'F1+' short-term rating is based on a standby bond purchase agreement (SBPA) provided by Dexia Credit Local, acting through its New York Branch. The short-term rating will expire on the earlier of: July 24, 2019, the expiration date of the SBPA, unless such date is extended; or the occurrence of events of termination, in accordance with the terms of the SBPA.

The SBPA provides for payment of tendered bonds during the weekly-rate mode, and is sized to cover the principal portion of purchase price and the maximum amount of interest that could accrue for an interest period of 187 days calculated at 12%, based upon a year of 365 days. The remarketing agent for the bonds is UBS Securities LLC. The bonds are expected to be delivered on or about July 24, 2007.

The bonds initially bear interest at a weekly interest rate, but may be converted to a flexible-, auction- or fixed- interest rate mode. While the bonds bear interest in the weekly-rate mode, interest is payable on each May 1 and Nov. 1, commencing Nov. 1, 2007. Holders of bonds bearing interest at a weekly rate may tender their bonds for purchase with prior notice. The bonds are subject to mandatory tender: on conversion of the interest rate mode; during the flexible mode, on each repurchase date; or upon the expiration, termination or substitution of the SBPA. The bonds are also subject to mandatory and optional prepayment in accordance with the terms of the documents.

Proceeds will be used to refund outstanding bonds and to fund multi-family and single-family loans.

For additional information, see the Fitch press release dated June 12, 2007, available on the Fitch Ratings web site at www.fitchratings.com.

Contact: Trudy Zibit [phone] or Maura McGuigan [phone], New York (for information on the long-term underlying rating of Vermont Housing Agency)

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.