OREANDA-NEWS. Fitch Ratings affirms the short-term 'F1+' rating on the following obligations issued by the Alaska Housing Finance Corporation (AHFC or the corporation):

--$150 million commercial paper (CP) program ($32.4 million CP notes currently outstanding);
--$128.2 million governmental purpose bonds;
--$80.9 million home mortgage revenue bonds;
--$43.1 million state capital project bonds.

SECURITY

The internal liquidity support is secured from the self-liquidity funds of AHFC.

KEY RATING DRIVERS

SUFFICIENT LIQUID INTERNAL RESOURCES: With Fitch stress scenarios included, internal funds/cash reserves are above 125% of outstanding short-term obligations.

HIGH LONG-TERM RATING: Sound financial ratios, a sizeable asset base, and strong management oversight provide support to AHFC's 'AA+' general obligation rating which is consistent with a short-term rating of 'F1+'.

MANAGEMENT EXPERTISE: Management has policies in place to ensure for a timely delivery of the cash amounts necessary to purchase variable rate demand obligations or CP if necessary.

RATING SENSITIVITIES

DECREASE IN LIQUID ASSET BASE: A decrease in AHFC's liquid asset base could lower their respective coverage levels and put negative pressure on the short-term rating.

CREDIT PROFILE

The 'F1+' rating reflects AHFC's ability to cover short-term obligations by a minimum of 1.25x from internal, highly liquid resources. As of Dec. 1, 2015, the corporation's pool of highly liquid cash and marketable securities totaled a Fitch adjusted $554.6 million. Based on this amount and assuming CP is drawn to its maximum authorized amount, the available resources would cover outstanding variable-rate bonds and CPs by 1.38x.

AHFC has specific policies in place in the event of a failed remarketing, mitigating concerns over potential non-delivery of needed funds. In addition to sufficient reserves, the corporation's housing finance bonds portfolio is performing well, limiting the likelihood of a potential drain on program surpluses or unrestricted assets. Fitch currently has an 'AA+' rating on the corporation's general obligation pledge which reflects the corporation's sound financial ratios, sizeable asset base, and strong management oversight.