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Fitch Rates Utah Hsg Corp $17MM 2005 Series E Class I VRDOs 'AAA/F1+'.

NEW YORK -- Fitch rates Utah Housing Corporation's $17 million single-family variable-rate mortgage bonds, 2005 series E class I bonds, 'AAA/F1+'. In addition, Fitch rates:

--$8.5 million class I fixed-rate bonds 'AAA';

--$1.5 million class II bonds 'AA';

--$3 million class III bonds 'AA-'.

The current offering is the 34th sale issued under a general trust indenture adopted by the corporation on May 1, 2000. The bonds are expected to close on July 21, 2005, through a syndicate led by Lehman Brothers.

In addition, Fitch affirms the following ratings:

--$642.6 million outstanding 2005 series A through D, 2004 series A through I, 2003 series A through G, 2002 series A through G, 2001 series A, and 2000 series C through G, class I variable-rate bonds at 'AAA/F1+' and class I fixed-rate bonds at 'AAA';

--$21.5 million outstanding 2005 series A through D, 2004 series A and I, 2003 series B, C, D, E, F, and G; 2002 series A, B C and D; 2001 series A; and 2000 series C through G class II bonds at 'AA';

--$125.6 million outstanding 2005 series A through D, 2004 series A through I, 2003 series A through G, 2002 series A through G, 2001 series A, and 2000 series C through G class III bonds at 'AA-'.

The $30 million 2005 series E single-family mortgage bonds are being issued under the general trust indenture that pledges mortgage revenues, investment earnings, reserves, and other trust funds to secure the bonds. Additionally, the class III bonds are secured by the corporation's general obligation (GO) pledge for payments of scheduled interest and principal at final maturity. The long-term 'AAA' and 'AA' ratings reflect the credit quality of the trust estate's collateral, the adequacy of projected revenues to pay debt service, and the credit enhancement provided by the 15% and 13% debt subordination underlying the class I and class II bonds, respectively.

A portion of the class I bonds will be sold initially as variable-rate tender option bonds. The short-term 'F1+' rating assigned to the variable-rate class I bonds reflects the availability of a standby bond purchase agreement provided by DEPFA BANK, plc (rated 'AA-/F1+' by Fitch).

In addition, both the class I and class II bonds have asset parity maintenance requirements directing revenues to be used to call bonds of that class prior to paying debt service of the next junior class. While the class III bonds are secured by the assets and revenues of the trust indenture, their rating reflects the 'AA-' rating assigned to the creditworthiness of the corporation's GO pledge. The GO rating is based on the corporation's overall financial and portfolio performances, adequate levels of liquidity and excess reserves, and better than average leverage ratios.

Fitch's rating definitions are available on the agency's public web site, www.fitchratings.com. Published ratings, criteria and methodologies and relevant policies and procedures are also available from this site, at all times. This document will remain on the public site for seven days.
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Publication:Business Wire
Date:Jul 19, 2005
Words:504
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