February 01, 2010
Georgia Department of Housing and Community Affairs

Atlanta, GA -Georgia Housing and Finance Authority's (GHFA) announced that its single-family mortgage revenue bonds series 2009B and 2009C received Standard & Poor’s Ratings 'AAA' long-term rating. Standard & Poor's also affirmed its 'AAA' rating on GHFA parity resolution.

The ratings reflect investments of the series 2009B and C bonds commensurate with the rating on the bonds; the extremely strong credit quality of the collateral securing the bonds--a pool of mortgages consisting primarily of FHA-insured or VA-guaranteed loans; fully funded reserves and sufficient liquidity; very strong credit quality of the investments; cash flow sufficiency demonstrating ample loss coverage protection at the 'AAA' level; and sufficient loss coverage in the form of excess assets.

"We believe GHFA remains a conservative agency, which has resulted in good financial performance," said Standard & Poor's credit analyst Mikiyon Alexander. "We expect that the reserves will continue to grow over time."

The bonds issued under the federal New Issue Bond Program (NIBP) were issued as long-term bonds under the 2009 series B deal and as escrow bonds under the 2009 series C deal. Under the NIBP, the bonds are securitized by Fannie Mae and Freddie Mac and the resulting securities are purchased by the federal Treasury Department at a below-market price.

“What this means to the average consumer is that DCA is able to offer affordable mortgage financing with down payment assistance,” said DCA Commissioner Mike Beatty. “Our focus is long term affordability and we are proud that we are able to continue to provide the Georgia Dream Program to the citizens of Georgia.

CONTACT: Tim Kirkpatrick 404-679-3126