12/29/11 Fitch, Moody's, Standard & Poor's Give Alaska Housing Top Ratings
ANCHORAGE, Thursday, December 29, 2011 - Despite the economic recession that continues to plague the housing industry nationwide, the Alaska Housing Finance Corporation (AHFC) again received AAA ratings - the highest possible - for bonds issued or converted under its Mortgage Revenue Bond (MRB) indenture, the most recent of which were its 2011 Series A and B and 2009 Series A-2 bonds on November 22, 2011. At that time, the AAA rating was also affirmed for all outstanding bonds previously issued or converted under the MRB indenture. Such ratings reflect the quality of the mortgage loans pledged to the bonds and the additional security provided by dedicated debt service reserve and special reserve funds. Lastly, such bonds are also supported by AHFC's general obligation pledge.
The AAA ratings were assigned by three global agencies that issue objective credit opinions, analysis, research, and data: Standard & Poor’s, Fitch Ratings, and Moody's Investors Service. Key rating drivers include loan portfolio composition, special reserve fund, general obligation support, management capabilities, financial flexibility for addressing market changes, superior financial resources as compared to other state housing finance agencies in the country, AHFC's relationship to the State of Alaska, geographical concentration of the loans, credit profile, and the overall health of Alaska's real estate market.
For investors, such ratings suggest that AHFC has a strong ability to meet its MRB-related financial obligations and possesses little risk of defaulting on bonds issued under its MRB indenture. For would-be Alaskan homeowners, these ratings lower AHFC's borrowing costs and allow it offer more affordable mortgages. "The ratings show that AHFC is strong financially and that those who buy our bonds can be confident in our performance," Dan Fauske, AHFC CEO/Executive Director said. "Alaskans can be proud that, even when times are tough and sister housing organizations Outside struggle, AHFC has been able to stay the course and remain financially solid with its creditors and bond holders."
AHFC is a self-supporting public corporation with offices in 16 communities statewide. It provides statewide financing for multi-family complexes 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 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, contact: Soren Johansson, public relations manager, 907-330-8447, email@example.com.