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ALASKA HOUSING FINANCE CORPORATION GENERAL OBLIGATIONS RAISED TO 'AA' FROM 'AA-' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Oct. 21 /PRNewswire/ -- Alaska Housing Finance Corporation's (AHFC) $142 million general housing purpose bonds, 1993 series A, are rated `AA' by Fitch. The bonds are being issued under a new trust indenture and are general obligations of the corporation. The rating reflects a revised assessment of the corporation's underlying general obligation creditworthiness. Accordingly, outstanding ratings on bonds similarly secured are upgraded as follows: general housing purpose bonds, 1992 series A (issued under a separate indenture) and general mortgage revenue bonds, 1991 series B, to `AA' from `AA-'; general mortgage revenue bonds, 1991 series A & C, to `AA/F-1+' from `AA-/F-1+'. The new offering, underwritten by Dean Witter Reynolds, Inc., is expected to be sold through negotiation the week of Oct. 25. The credit trend is stable.
 In addition to the funds held under the indenture, the bonds are secured by assets and revenues of AHFC's general account and funds not specifically pledged to other bondholders or excluded by law. AHFC's improved credit quality is supported by the continued sufficient size, quality, and liquidity of the corporation's general account investment portfolio; the adequate projected debt service coverage from net revenues; and the corporation's growing equity base. AHFC's combined fund equity at fiscal year-end June 30, 1993, exceeded $1.7 billion, and adjusted debt-to-equity declined to less than two-to-one. Additionally, AHFC's overall favorable financial results, improved loan portfolio performance, and experienced management team remain important credit factors.
 Credit concerns include the lack of restrictive financial covenants regarding the general account's ongoing net asset position or liquidity, as well as the real estate market's vulnerability to the state's oil- dependent economic base.
 -0- 10/21/93
 /CONTACT: Vincent J. Barberio of Fitch, 212-908-0505/


CO: Alaska Housing Finance Corporation ST: Alaska IN: FIN SU: RTG

MP -- NY039 -- 5131 10/21/93 11:23 EDT
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Publication:PR Newswire
Date:Oct 21, 1993
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