MOODY'S UPGRADES RATING TO FLORIDA HOUSING FINANCE AUTHORITY TO Aa1 FROM Aa

Business Wire, May 2, 1995

NEW YORK--(BUSINESS WIRE)--May 2, 1995--The rating on the bonds is being upgraded to Aa1 from Aa, based upon the following factors that combine to provide very high-quality bondholder security:

A continuing trend of favorable program financial performance, including fund-balance growth and continued net income generation, provides projected cash flow stability. In addition, all monies currently held in Acquisition Funds will be exchanged for GNMA and FNMA Mortgage-Backed Securities (MBS), further enhancing overall security.

Mortgage insurance provisions are very strong, providing coverage for 100% of the unpaid principal balance of those loans carrying private mortgage insurance with an advance claims feature. Over 62% of the non-securitized loans carry private mortgage insurance with providers rated Aaa, while an additional 19% are FHA insured.

Higher-than-average delinquencies on the non-securitized loans are offset by the advance claims feature and the program's overcollateralization level.

Cash flow projections indicate full debt service coverage under all stressful prepayment scenarios, including nondelivery of GNMA and FNMA MBS. Until monies are used to purchase MBS from the servicer, all acquisition funds will remain invested in guaranteed investment agreements meeting moody's Aaa criteria.

Sufficient liquidity reserves, a sound legal structure, and conservative investment provisions for program funds further enhance bondholder security.

CONTACT: Moody's Investor Service, New York

Kelly O'Brien

Analyst

212/553-4456