Fitch Affirms Alaska Housing Finance Corp.'s CP at 'F1+'

Business Wire, Feb 15, 2005

NEW YORK -- Fitch Ratings affirms Alaska Housing Finance Corporation's (the corporation) commercial paper program at 'F1 '. Proceeds from the program provide funds for the purchase and holding of mortgage loans pending transfer to one of the corporation's bond programs. The commercial paper (CP) is a general obligation (GO) of the corporation.

Liquidity, provided by the general account of the revolving fund, is sufficient relative to the fund's overall operations. As of Dec. 31, 2004, almost all of the $370 million in investments held in the general account are high-quality, short-term securities. This liquidity backup, supporting up to $150 million of CP, has consistently been greater than 100% of the CP amount outstanding. Additionally, the corporation has a $200 million credit line with Landesbank Hessen-Thueringen's Girozentrale (Helaba) bank rated 'AAA/F1 ' by Fitch.

The corporation's short-term GO debt rating is based on a combination of several credit factors influencing the corporation's overall credit strength. The corporation's housing finance bond portfolios are performing well, enhancing financial performance and limiting the likelihood of a potential drain on program surpluses or restricted assets. The corporation's balance sheet is strong, as measured by an adjusted debt-to-equity ratio of 1.8:1, the lowest of 50 state housing finance agencies. Overall financial performance remains favorable. In addition, management has demonstrated a favorable track record in regard to loan programs and financial operations.