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Fitch Releases SHFA Stat Book: Sound FY 2013 Results Despite Prolonged Market Challenges

February 11, 2014



NEW YORK--(BUSINESS WIRE)-- Based on 35 state housing finance agencies (SHFAs), fiscal 2013 contained the same challenges for SHFAs as the past several fiscal years, according to a new Fitch Ratings report titled 'State Housing Finance Agencies Statistical Information.'

As low interest rates suppress investment income and low conventional mortgage rates prevent SHFAs from issuing new tax-exempt bonds to fund new mortgage lending, SHFAs continue to find other ways to remain profitable.

The median net interest spread (NIS) ratio for the 35 SHFAs saw a slight reduction in fiscal 2013 compared with the previous year.

Leverage ratios continued to improve as the median adjusted debt-to-equity ratio for the 35 SHFAs declined to 3.6 times (x) in fiscal 2013 from 4.2x in fiscal 2012.

The percentage of variable-rate debt outstanding for the 35 SHFAs decreased to 20.3% in fiscal 2013 from 21.8% in fiscal 2012, the third straight year of declines in variable-rate debt outstanding.

The report is available on the Fitch Ratings web site, 'www.fitchratings.com', under Public Finance.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research: State Housing Finance Agencies Statistical Information

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=730455

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.



Fitch Ratings, Inc.

Ryan J. Pami, +1-212-908-0803

Analyst

Fitch Ratings, Inc.

One State Street Plaza

New York, NY 10004

or

Charles Giordano, +1-212-908-0607

Senior Director

or

Media Relations

Elizabeth Fogerty, +1-212-908-0526

elizabeth.fogerty@fitchratings.com

Source: Fitch Ratings


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