--Series 2009 A;
--Series 2009 B.
The 'AA+' rating is being assigned to the various AHFC bank bonds in connection with the upcoming substitutions of liquidity facilities for the above referenced series to B of T Mitsubishi (rated 'A/F1' with a Stable Outlook) from the internal liquidity of the AHFC. For more information regarding this substitution please see the Fitch press releases titled, 'Fitch to Revise S-T Rating to 'F1' on
Additionally, in conjunction with the assignment, Fitch affirms approximately
The Rating Outlook is Stable.
Upon certain events, various bonds can be converted to bank bonds and the accelerated principal and interest payments would become general obligations of the Corporation, secured by its full faith and credit pledge.
KEY RATING DRIVERS
STRONG ISSUER FINANCIAL POSITION: AHFC has consistently had one of the highest financial strength profiles relative to its peers which contributes to its 'AA+' GO rating. Despite net operating losses over the last few years, AHFC's sizable asset base allows the corporation to maintain its credit strength.
SUCCESSFUL MANAGEMENT PERSONNEL: AHFC has a strong, well-tenured management staff that continues to demonstrate the financial flexibility to address market challenges.
GEOGRAPHIC CONSTRAINTS: A high portion of AHFC's loan portfolio, which provides security for other general obligation backed bonds, lies in or around the city of
STRONG UNDERLYING ASSETS: The aggregate underlying mortgage portfolio has consistently performed adequately and has a current delinquency rate of only 2.1% (60+ days), which is lower than state and national averages.
INCREASED STATE TRANSFERS: Under current legislative policies, transfers from AHFC to the state of
Based on a review of the standby bond purchase agreement supporting the substitution, the diversification of liquidity providers, and the strong cash levels residing within the programs, Fitch believes that AHFC's GO rating can support the additional risk associated with these potential bank bonds. In addition to assigning the ratings for these bank bonds, Fitch has also affirmed AHFC's GO rating and all outstanding
Additional information is available at 'www.fitchratings.com'.
--'State Housing Finance Agencies: General Obligation Rating Criteria' (
--'Revenue-Supported Rating Criteria' (
State Housing Finance Agencies General Obligation Rating Criteria
Revenue-Supported Rating Criteria
Source: Fitch Ratings
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