July 09, 2013
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Maryland Department of Housing and Community Development

 
 
Fitch Ratings, the global credit rating agency, assigned ‘AA+’ credit bond rating to DHCD’s Community Development Administration on their $52.5 million housing revenue bonds, 2013 series B and C, The Wall Street Journal reported Monday.
 
The Community Development Administration, the housing finance unit within DHCD, “has demonstrated strong programmatic oversight capabilities and has had a long successful history of administering multifamily programs,” Fitch reported, according to a release published in The Wall Street Journal. Read the report here.
 
The report praises the administration’s strong over-collateralization practices and federally insured loans for minimalizing risk to the department’s portfolio. The CDA’s portfolio consist of funds pledged under the legal provisions of the resolution as well as group, single family, and multifamily homes.
 
Last month, Moody’s Investors Service rated two of the CDA’s Multifamily Home Development Revenue bonds at ‘Aaa’, the highest rating achievable.
 
The investor service distinguished the Glen Manor Apartments Revenue Bonds as ‘Aaa’ due to the Credit Enhancement Agreement between the CDA and the Federal Home Loan Mortgage Corporation. The Orchard Mews Apartment Project Revenue Bonds were confirmed at ‘Aaa’ after the rating was on review in 2012. Moody’s found that the bonds have ‘high credit quality of credit enhanced mortgage’, ‘no reliance on performance of underlying mortgage’ and ‘strong asset-to-debt ratio’.
 
Both credit rating agencies predict a stable outlook for CDA Revenue Bonds. The CDA provides secure and quality loans with all their developments and programs.