01/14/11 Standard & Poor's Increases AHFC's Bond Rating to AA+
ANCHORAGE, Alaska - Friday, January 14, 2011 - Standard & Poor's (S&P) Ratings Services has raised its issuer credit rating (ICR) for Alaska Housing Finance Corporation (AHFC) to AA+ from AA.
The Jan. 5, 2011, report issued by S&P credits AHFC with:
- "Very high levels of equity comparable to those of other 'AA+' rated housing finance agencies (HFAs)…;
- Prudent debt management policies;
- An experienced and active management team with strong legislative support;
- Dividend plan passed by the state legislature in 2003 that limits the transfers of net income from AHFC to the state; and
- Strong creditworthiness of the state of Alaska… "
AHFC Chief Financial Officer Joe Dubler notes the corporation experienced its first net operating loss of $9.8 million due to market responses caused by the national economic recession and says, "The rating by S&P strongly demonstrates that AHFC responded swiftly and appropriately to the situation by adjusting its portfolio to minimize losses and maximize returns."
The report issued by S&P says, "AHFC's equity base is among the highest of all HFAs [Housing Finance Agencies] in dollar terms, and is the highest among all rated HFAs as a percentage of assets. In fact, the five-year average ratios of AHFC's equity ratios significantly exceed those of other HFAs rated at the 'AA' and 'AA+' levels."
CEO/Executive Director Dan Fauske congratulates the work of the AHFC management team and its proactive approach to dealing with the most significant recession since the Great Depression and says, "The S&P report indicates that the successes of AHFC are unprecedented anywhere in the country. The losses we experienced were minimal in contrast to other agencies and demonstrate our strong commitment to excellence in managing our public resources."
AHFC is a self-supporting public corporation with offices in 16 communities statewide. It provides statewide financing for multi-family complexes, congregate facilities, and single-family homes, with special loan options for low- to moderate-income borrowers, veterans, teachers, health care professionals, and those living in rural areas of the state.
AHFC also provides energy and weatherization programs, low-income rental assistance in 17 communities, and special programs for the homeless and those seeking to become self-sufficient. AHFC has contributed more than $1.9 billion to Alaska's state budget revenues through cash transfers, capital projects and debt-service payments.
For more information about the bond-rating increase, contact Joe Dubler, AHFC CFO 907-330-8394 or email@example.com.
For more information about AHFC, contact Sherrie Simmonds, Corporate Communications Officer, 907-330-8447 or firstname.lastname@example.org.