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Moody's assigns Aaa to New Mexico Mortg. Fin. Auth. Single Family Mortgage Program Class I Bonds Series 2016A.

New York: Issue: Single Family Mortgage Program Class I Bonds 2016 Series A - 1 (Tax Exempt) (Non - AMT); Rating: Aaa; Sale Amount: $40,000,000; Expected Sale Date: 03-15-2016; Rating Description: Mortgage: Single-Family: GNMA/FNMA/FHLMC

Issue: Single Family Mortgage Program Class I Bonds 2016 Series A - 2 (Tax Exempt) ( AMT); Rating: Aaa; Sale Amount: $22,790,000; Expected Sale Date: 03-15-2016; Rating Description: Mortgage: Single-Family: GNMA/FNMA/FHLMC

Summary Rating Rationale

Moody's Investors Service assigns Aaa rating to the $62.79M of New Mexico MFA's Single Family Mortgage Program Class I Bonds Series 2016 A1 and 2016 A2 and affirms the rating of series 2015A, B, D, and E.

The Aaa rating assigned to the proposed $62.79 million series 2016 A1 and A2 bonds reflects Moody's view of the program's superior security, driven by the purchase of Ginnie Mae and Fannie Mae mortgage-backed certificates, the program's strong financial position as evidenced by a program asset to debt ratio of 1.04 as of 9/30/15, cash flow projections that exhibit timely payments of debt service in various stress scenarios, and a sound legal structure. Additionally Moody's is affirming the outstanding Moody's rated parity debt and outlook.

Rating Outlook

The outlook for the program is stable based on a strong financial position, the securitized loan portfolio, as well as the stable outlook of the U.S. government.

Factors that Could Lead to an Upgrade

Not applicable

Factors that Could Lead to a Downgrade

Substantial erosion of asset-to-debt ratio

Downgrade of the United States Government

Legal Security

The bonds are limited obligations of the Authority and are payable from revenues and assets pledged under the Trust Indenture dated as of November 1st, 2005. The bonds are being offered on parity, equally and ratably secured with approximately $489 million in outstanding Single Family Mortgage Program Class I Bonds (as of September 30, 2015) under the Trust Indenture.

Use of Proceeds

The proceeds of the bonds and available funds under the indenture will be used to pay cost of issuance, originate new mortgage loans, and to refund previous bond series. The mortgage-backed securities (MBS) currently collateralizing the prior bonds will be transferred into the 2016 A accounts. The revenues of which will pay monthly debt service and trustee fees.

Obligor Profile

Since its inception, NMMFA has issued thirty two series of mortgage revenue bonds under the Single Family Mortgage Program Class I Bonds 2005 General Indenture dated as of November 1st , 2005. The bonds under the indenture are equally and ratably secured on a parity basis with NMMFA's Prior Single Family Mortgage Program Class I Bonds and with any additional Single Family Mortgage Program Class I Bonds hereafter issued pursuant to the Trust Indenture.

Methodology

The principal methodology used in this rating was U.S. Housing Finance Agency Single Family Programs published in February 2013.

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Publication:Daily the Pak Banker (Lahore, Pakistan)
Date:Mar 16, 2016
Words:474
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