Additionally, Fitch affirms approximately
The Rating Outlook for the bonds is Stable.
The trust indenture pledges all the mortgages in the loan portfolio consisting of multi-family, single-family and group homes as well as the funds pledged under the legal provisions of the resolution.
KEY RATING DRIVERS
PORTFOLIO LARGELY GUARANTEED OR PARTIALLY INSURED: As of
SUFFICIENT OVER-COLLATERALIZATION: On a cash flow basis, the assets under the resolution show a minimum asset parity ratio of 108.4%, although Maryland CDA has the right to withdraw excess assets. However, by practice, Maryland CDA continues to leave sufficient over-collateralization in the indenture.
CAPABLE MANAGEMENT OVERSIGHT: Maryland CDA has demonstrated strong programmatic oversight capabilities and has had a long successful history of administering multi-family programs.
INDENTURE CONSIDERATIONS: The rating is constrained to its current level due to the fact that the issuer has the ability to withdraw excess assets and to include various types of loans other than first lien mortgages.
REMOVAL OF ASSETS: Credit risks to the housing revenue bond portfolio are somewhat remote given its federally insured portfolio and strong over-collateralization. This over-collateralization mitigates risks from its loan portfolio. However, removal of assets may present negative rating pressure.
The 2014 series C bonds are the 49th series of bonds to be sold under a general bond resolution adopted on
The portfolio consists mainly of 53 multi-family residential developments which, as of
More than 54% of the multi-family units in the portfolio receive rental assistance payments under Section 8 of the U.S. Housing Act of 1937, interest-rate subsidies under Section 236 of the National Housing Act, or subsidies from the
Credit concerns are related to the bond resolution allowing various types of loans including uninsured and second lien mortgages. These concerns are mitigated by the current loan portfolio being 95% guaranteed or insured by a U. S. government entity, management demonstrating strong programmatic oversight, and the consistent financial performance of the portfolio.
In addition, Fitch affirms the following ratings:
--MCDA Housing Revenue Bonds, 2004 Series B, C, & D at 'AA+';
--MCDA Housing Revenue Bonds, 2005 Series A, B, & C at 'AA+';
--MCDA Housing Revenue Bonds, 2006 Series A, B, C, & D at 'AA+';
--MCDA Housing Revenue Bonds, 2007 Series A, B, & C at 'AA+';
--MCDA Housing Revenue Bonds, 2008 Series A, B, C, & D at 'AA+';
--MCDA Housing Revenue Bonds, 2009 Series A at 'AA+';
--MCDA Housing Revenue Bonds, 2012 Series A, B, & D at 'AA+;
--MCDA Housing Revenue Bonds, 2013 Series A, B, C, D, E and F at 'AA+';
--MCDA Housing Revenue Bonds, 2014 Series A & B at 'AA+'.
Additional information is available at 'www.fitchratings.com'.
--'Rating Criteria for Pooled Multifamily Housing Bonds' (
--'Revenue-Supported Rating Criteria' (
Rating Criteria for Pooled Multifamily Housing Bonds
Revenue-Supported Rating Criteria
Ryan J. Pami
Source: Fitch Ratings
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