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Fitch to Confirm 'F1+' Rating on Various Utah Hsg Corp S-F Mtge Class I VRBs; Removes Negative Watch

February 4, 2014

NEW YORK --(BUSINESS WIRE)-- On the effective date of Feb. 6, 2014 , Fitch Ratings will confirm the short-term ratings of 'F1+' and remove the Rating Watch Negative assigned to the following $60,850,000 Utah Housing Corporation (UHC) Single Family Mortgage Class I Variable Rate bonds (the bonds), consisting of: -- $6,030,000 2000 Series D-1 (tax-exempt); -- $560,000 2000 Series D-2 (taxable); -- $6,195,000 2000 Series E-1 (tax-exempt); -- $455,000 2000 Series E-2 (taxable); -- $5,705,000 2000 Series F-2 (tax-exempt); -- $2,545,000 2000 Series F-3 (taxable); -- $4,950,000 2000 Series G-2 (tax-exempt); -- $3,190,000 2000 Series G-3 (taxable); -- $3,945,000 2001 Series A-2 (tax-exempt); -- $3,925,000 2002 Series A-1 (tax-exempt); -- $5,320,000 2002 Series B (tax-exempt); -- $7,180,000 2002 Series C (tax-exempt); -- $6,225,000 2002 Series D-2 (tax-exempt); -- $2,175,000 2002 Series D-3 (taxable); -- $505,000 2005 Series F-2 (taxable); -- $890,000 2005 Series G-2 (taxable); -- $1,055,000 2005 Series H-2 (taxable). The short-term rating action is in connection with the substitution of the liquidity support provided by Fannie Mae and the Federal Home Loan Mortgage Corporation (each rated 'AAA/F1+', Rating Watch Negative) in the form of a Temporary Credit and Liquidity Facility (TCLF), with a substitute Standby Bond Purchase Agreement (SBPA) to be issued by The Bank of New York Mellon (rated 'AA-/F1+', Stable Outlook), effective Feb. 6, 2014 . KEY RATING DRIVERS: On the effective date, the short-term 'F1+' ratings will be based on the liquidity support provided by The Bank of New York Mellon, in the form of a substitute SBPA. The long-term 'AAA' ratings assigned to the bonds continue to be based on the ratings assigned to Utah Housing Corporation's Class I Variable Rate Bonds under the 2000 General Trust Indenture (rated 'AAA'). The Rating Outlook is Stable for the long-term rating. The SBPA provides for the payment of the total principal component of purchase price for all series plus an amount equal to 186 days of interest for each series calculated at a maximum rate of 12% for the tax-exempt series and a maximum rate of 15% for the taxable series, based on a year of 360 days. The principal and interest amount is available for tendered bonds during the weekly rate mode in the event that the proceeds of a remarketing of the bonds are insufficient to pay the purchase price following an optional or mandatory tender. The SBPA will expire on Jan. 1, 2017 , the stated expiration date, unless such date is extended; upon conversion of all series of bonds to an interest rate mode other than the weekly rate mode; or upon the occurrence of certain other events of default which result in a mandatory tender or other termination events related to the credit of UHC's Class I Variable Rate Bonds under the 2000 General Trust Indenture which result in an automatic and immediate termination. The short-term 'F1+' ratings will expire on the expiration or prior termination of the SBPA. The remarketing agent for the 2000 Series F-2 bonds is Wells Fargo Bank, N.A. and, for all other series of bonds, the remarketing agent is Barclays Capital Inc. For more information on the long-term rating, see the press release report dated April 29, 2013 'Fitch Rates Utah Housing Corp's Single Family Class I Refunding Bonds 2013 Series A (Taxable) May 2000 Indenture' available on Fitch's website at . RATING SENSITIVITIES: The short-term rating reflects the short-term rating that Fitch maintains on the bank providing liquidity support, and will be adjusted upward or downward in conjunction with the short-term rating of the bank and, in some cases, the long-term rating of UHC's Class I Variable Rate Bonds under the 2000 General Trust Indenture. The long-term rating is exclusively tied to the creditworthiness of UHC's Class I Variable Rate Bonds under the 2000 General Trust Indenture and will reflect all changes to that rating. Additional information is available at . Applicable Criteria and Related Research : --'U.S. Municipal Structured Finance Criteria', Feb. 27, 2013 ; --'Rating Guidelines for Variable-Rate Demand Obligations and Commercial Paper Issued with External Liquidity Support', Jan. 27, 2014 . Applicable Criteria and Related Research : U.S. Municipal Structured Finance Criteria Rating Guidelines for Variable-Rate Demand Obligations and Commercial Paper Issued with External Liquidity Support 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 Primary Analyst Kasia Reed , +1-212-908-0500 Analytical Consultant Fitch Ratings, Inc. One State Street Plaza New York, NY 10004 or Secondary Analyst Trudy Zibit , +1-212-908-0689 Managing Director or Committee Chairperson Linda Friedman , +1-212-908-0727 Senior Director or Media Relations Elizabeth Fogerty , New York , +1 212-908-0526 Source: Fitch Ratings

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