S&P: Tennessee Housing Development Agency's 2016-2 Bonds Assigned 'AA+' Rating
"The rating reflects our view of the very strong resolution cash flows, a single-family whole-loan portfolio of very strong credit quality, sufficient liquid reserves, very high-quality investments, and legal provisions and program management consistent with the rating on the bonds," said S&P Global Ratings credit analyst Jose Cruz.
This is the eighth issue under THDA's 2013 general resolution, which was adopted Jan. 29, 2013. We understand that, at closing, approximately $26.8 million of the issue's underlying mortgage loans will be transferred into the 2013 general resolution from refunded bond series issued under the agency's 1985 general resolution and $24.6 million of the 2016-2 issuance will be used to redeem prior bonds, leaving approximately $100.4 million available for the purchase of additional whole loans. The supplemental resolution governing issue 2016-2 provides for mandatory redemption from unexpended proceeds on Jan. 1, 2017, to the extent that the additional loans have not been purchased.