RATING NEWS: Moody's Confirms Aa Rating on Alaska Housing Finance Corporation General Obligation Bonds

Business Wire, April 22, 1996

NEW YORK--(BUSINESS WIRE)--April 22, 1996--Moody's has confirmed the Aa rating for the general obligation of the Alaska Housing Finance Corporation.

This rating confirmation is based on the continuing financial strength of the Corporation, the stabilization of State of Alaska usage of Corporation funds and the proven management capabilities of the agency.

The AHFC's financial performance continuously ranks among the top nationwide for size, bondholder security and profitability. Large general and combined fund balances provide sufficient cushions for bondholders in the event of shortfalls within individual programs. Asset quality of the agency remains strong with quality loans and high security investments.

During the past two years, the Corporation has implemented plans to transfer $470 million to the State of Alaska during the period between fiscal years 1995 through 2000. Though these amounts are significant, it is expected that agency resources shall remain sufficient to maintain strong credit quality. The State is currently developing plans to maintain long-term fiscal stability as oil reserves are depleted and thus minimize additional usage of Corporation funds; however, future State needs could alter these plans.

Core management of the Corporation displays continuing strong oversight and sophistication in conservatively managing the agency. Management has a strong track record of responding quickly and successfully to changing conditions. It is expected that these qualities will maintain the continuing credit quality of the Corporation.

CONTACT: Micheal Culnan, 212/553-4554