Rating Action: Moody's assigns the rating of Aaa to Florida Housing Finance Corporation Homeowner Mortgage Revenue Bonds
Global Credit Research - 09 Apr 2013
Moody's Rating
Issue: Homeowner Mortgage Revenue Bonds (Special Program) 2013 Series A (Non-AMT) ; Rating: Aaa; Sale Amount: $108,810,000; Expected Sale Date: 4-25-2013; Rating Description: Housing Other
OPINION
Moody's Investors Service has assigned a rating of Aaa to the Florida Housing Finance Corporation Homeowner Mortgage Revenue Bonds (Special Program) $108.81 million 2013 Series A (Non-AMT). The outlook on the bond program remains negative.
RATING RATIONALE
The Aaa rating on the Homeowner Mortgage Revenue Bonds (Special Program) reflects the program's strong financial position, high quality GNMA and FNMA mortgage backed securities which will collateralize the bonds as well as the sufficient program asset to debt ratio as exhibited in the consolidated program cash flows. The negative outlook reflects the current rating outlook on the US government's bond rating, and the rating of FNMA.
STRENGTHS
- 100% of the loans are backed by GNMA or Fannie Mae. The GNMA guarantee on payment of principal and interest on the mortgage loans backed by the full faith and credit of the United States.
- Sound legal structure and legal limitations on investments provide additional security for the program.
- Cash Flow projections demonstrating that under various pre- payment and non-origination scenarios, MBS and investment revenues are more than adequate to pay the required debt service on the bonds.
CHALLENGES
- Potential decline of asset to debt ratio due to external factors.
- Potential deterioration of U.S. Government credit rating
OUTLOOK
The negative outlook reflects the current rating outlook on the US government's bond rating, and the rating of FNMA.
WHAT COULD MAKE THE RATING GO UP
N/A
WHAT COULD MAKE THE RATING GO DOWN
Presence of external factors that severely erode asset to debt ratio.
Potential rating deterioration on the entities which guarantee full and timely payment on the bonds
The principal methodology used in this rating was U.S. Housing Finance Agency Single Family Programs published in February 2013. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.
REGULATORY DISCLOSURES
For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.
Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.
Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.
Ferdinand S. Perrault
Vice President - Senior Analyst
Public Finance Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Florence Zeman
Associate Managing Director
Public Finance Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
© 2013 Moody's Investors Service, Inc. and/or its licensors and affiliates (collectively, "MOODY'S"). All rights reserved.
CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. ("MIS") AND ITS AFFILIATES ARE MOODY'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND CREDIT RATINGS AND RESEARCH PUBLICATIONS PUBLISHED BY MOODY'S ("MOODY'S PUBLICATIONS") MAY INCLUDE MOODY'S CURRENT OPINIONS OF THE
Global Credit Research - 09 Apr 2013
Moody's Rating
Issue: Homeowner Mortgage Revenue Bonds (Special Program) 2013 Series A (Non-AMT) ; Rating: Aaa; Sale Amount: $108,810,000; Expected Sale Date: 4-25-2013; Rating Description: Housing Other
OPINION
Moody's Investors Service has assigned a rating of Aaa to the Florida Housing Finance Corporation Homeowner Mortgage Revenue Bonds (Special Program) $108.81 million 2013 Series A (Non-AMT). The outlook on the bond program remains negative.
RATING RATIONALE
The Aaa rating on the Homeowner Mortgage Revenue Bonds (Special Program) reflects the program's strong financial position, high quality GNMA and FNMA mortgage backed securities which will collateralize the bonds as well as the sufficient program asset to debt ratio as exhibited in the consolidated program cash flows. The negative outlook reflects the current rating outlook on the US government's bond rating, and the rating of FNMA.
STRENGTHS
- 100% of the loans are backed by GNMA or Fannie Mae. The GNMA guarantee on payment of principal and interest on the mortgage loans backed by the full faith and credit of the United States.
- Sound legal structure and legal limitations on investments provide additional security for the program.
- Cash Flow projections demonstrating that under various pre- payment and non-origination scenarios, MBS and investment revenues are more than adequate to pay the required debt service on the bonds.
CHALLENGES
- Potential decline of asset to debt ratio due to external factors.
- Potential deterioration of U.S. Government credit rating
OUTLOOK
The negative outlook reflects the current rating outlook on the US government's bond rating, and the rating of FNMA.
WHAT COULD MAKE THE RATING GO UP
N/A
WHAT COULD MAKE THE RATING GO DOWN
Presence of external factors that severely erode asset to debt ratio.
Potential rating deterioration on the entities which guarantee full and timely payment on the bonds
The principal methodology used in this rating was U.S. Housing Finance Agency Single Family Programs published in February 2013. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.
REGULATORY DISCLOSURES
For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.
Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.
Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.
Ferdinand S. Perrault
Vice President - Senior Analyst
Public Finance Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Florence Zeman
Associate Managing Director
Public Finance Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
© 2013 Moody's Investors Service, Inc. and/or its licensors and affiliates (collectively, "MOODY'S"). All rights reserved.
CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. ("MIS") AND ITS AFFILIATES ARE MOODY'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND CREDIT RATINGS AND RESEARCH PUBLICATIONS PUBLISHED BY MOODY'S ("MOODY'S PUBLICATIONS") MAY INCLUDE MOODY'S CURRENT OPINIONS OF THE
