BURLINGTON, VT Fitch Ratings has assigned an “A+” rating to Vermont Housing Finance Agency’s 1990 single-family housing bond resolution. Fitch has labeled its rating outlook “stable.” Fitch’s long-term credit ratings operate on a 10-grade scale from “AAA,” the highest-quality investment grade bond, to “D,” the lowest category junk bond. The resolution, which includes approximately $447 million in outstanding bonds in Series 9 through 27, was created in 1990 and issued bonds from 1990 to 2007. This is Fitch's initial rating assignment for the resolution. “We’re pleased with Fitch’s rating, and think it’s a demonstration of the rating agency’s faith in the long-term viability of VHFA,” said Executive Director Sarah Carpenter. “The loan portfolio consists of 30-year fixed-rate seasoned loans. The majority, 53 percent, is privately insured. The second largest portion, 27 percent, is uninsured with safe loan-to-value ratios of 80 percent or lower. All this minimizes potential loss exposure,” she added. Fitch credits VHFA’s “successful history of administering its single-family programs.” Fitch Ratings Ltd., with headquarters in New York and London, is a global rating agency that provides the world’s credit markets with independent and prospective credit opinions, research, and data. The company is part of the Fitch Group, a majority-owned subsidiary of Fimalac S.A., which is headquartered in Paris, France. The Vermont Legislature created VHFA in 1974 to finance and promote affordable housing opportunities for lowand moderate-income Vermonters. Since its inception, the Agency has helped approximately 26,500 Vermont households with affordable mortgages and financed the development of approximately 7,700 affordable rental units.
FITCH RATES VHFA BOND RESOLUTION ‘A+’
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