Fitch Rts Indiana Housing's $45.7MM 2001 Ser D Bonds `AAA/F1+'.Business Editors NEW YORK--(BUSINESS WIRE)--Nov. 29, 2001 Fitch assigns a rating of `AAA/F1+' to Indiana Housing Finance Authority's (the Authority) $45.7 million single family mortgage revenue bonds, 2001 series D. The bonds are adjustable-rate bonds subject to a conversion to fixed rate at the Authority's option on or after June 1, 2002. Bonds not previously converted are subject to mandatory tender on the initial interest adjustment date of Dec. 17, 2002. Additionally, Fitch affirms its 'AAA' rating on the $614 million outstanding 1998 series A-D A-D Advance-Decline, or measurement of the number of issues trading above their previous closing prices less the number trading below their previous closing prices over a particular period. , 1999 series A,X,Y, and Z, 2000 series A-D and 2001 series A-C A-C Air Conditioning bonds. Bond proceeds will be invested in a short term guaranteed investment contract Guaranteed investment contract (GIC) A pure investment product in which a life company agrees, for a single premium, to pay at a maturity date the principal amount of a predetermined annual crediting (interest) rate over the life of the investment. (GIC GIC See: Guaranteed Investment Contract GIC See guaranteed investment contract (GIC). ) with an eligible provider. The bonds are expected to close on Dec. 13, 2001. The adjustable-rate bonds are being issued under a master indenture that pledges the revenue and assets from mortgage loans under the Authority's single family mortgage program to secure the bonds. The long-term rating assigned to these bonds reflects the security of the single family mortgage program while the short-term rating reflects strong liquidity provided by the GIC. The bonds are being issued to refund certain outstanding mortgage revenue bonds and ultimately finance the origination of mortgage loans through the purchase of mortgage certificates as part of the Authority's single family program. The program primarily consists of Ginnie Mae Ginnie Mae: see Federal National Mortgage Association. and Fannie Mae- guaranteed mortgage certificates Guaranteed Mortgage Certificates (GMC) First issued by Freddie Mac in 1975, G.M.C.s, like PCs, represent undivided interest in specified conventional whole loans and participations previously purchased by Freddie Mac. . This issue will provide funds for deposit in a GIC in an amount equal to the bond amount. Amounts on deposit in the GIC will be available to pay the purchase price and the accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. upon redemption. Prior to conversion to a fixed rate, each adjustable rate bond must be tendered for purchase on each interest adjustment date. The GIC will be structured to meet the adjustable rate bond demand features and will have a term date of Dec. 17, 2002. For more information on the Indiana Housing Finance Authority's Single Family Mortgage Program, see Fitch's research report on `Indiana Housing Finance Authority - single family mortgage revenue bonds series 2001 C', dated Sept. 21, 2001 and available on FitchResearch, Fitch's subscription-based web site at `http://www.fitchratings.com'. |
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