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MOODY'S RATING AGENCY UPGRADES SEVEN ALASKA HOUSING FINANCE BOND ISSUES

 ANCHORAGE, Alaska, June 8 /PRNewswire/ -- The ratings of seven of Alaska Housing Finance Corp.'s (AHFC) bond issues were recently upgraded in a review by Moody's bond rating agency, AHFC said today.
 The rating upgrades were mainly due to program financial positions, which continue to improve, as very strong cash flows pay down bonds rapidly, Moody's reported in the May 1993 edition of "Single Family Programs."
 "The level of overcollateralization of bonds combined with the mortgage insurance coverage and the general obligation pledge of the corporation provides bondholders with excellent protection," the report said.
 AHFC has nearly 60 ratings by Moody's on programs that were established to provide single family mortgage loans. However, all but eight of these ratings are based on third-party guarantees on the loans or the bonds from government-sponsored enterprises such as Ginnie Mae, Fannie Mae, Freddie Mac, the state of Alaska or bank letters of credit. the remaining eight were reviewed, with seven receiving upgrades, most from Aa to Aa1 or Aaa.
 Moody's said AHFC's portfolio continues to perform well, a trend which began during 1990. Serious delinquencies (the rate of loans past due three months or more) and foreclosures were at 1.54 percent at Sept. 30, 1992, well below the state average of 2.61 percent and the national level of 2.64 percent. AHFC's foreclosed inventory at that time was 0.61 percent, or about $20 million. The figures are "a vast improvement" over the same period in 1988, when foreclosures exceeded $250 million and delinquencies exceeded 15 percent.
 The improved portfolio, Moody's said, can be attributed to general improvement in the economy, "but more so to the effort by the corporation to deal with delinquent borrowers and foreclosed properties. Refinancing and loan workout programs and asset management controls were established, which have enabled AHFC to reverse the trend."
 The Moody's report also noted that AHFC is financially "very strong," having earned more than $147 million in fiscal year 1992, $40.7 million of which was paid to the State of Alaska in accordance with its annual dividend policy.
 -0- 6/8/93
 /CONTACT: Margaret Nelson of Alaska Housing Finance, 907-564-9321/


CO: Alaska Housing Finance Corp.; Moody's ST: Alaska IN: FIN SU: RTG

LM-AL -- SE011 -- 6802 06/08/93 18:48 EDT
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Date:Jun 8, 1993
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