...Rating and Sector Outlook Stable: Fitch Ratings expects state housing finance agency (SHFA) ratings to be stable in the coming year. The sector outlook is also stable given the continued market recovery from the housing crisis. The main drivers for the ratings outlook include sound SHFA financial ratios driven by the deleveraging of bond programs resulting in increased equity and the onset of replacing depleted SHFA assets largely through offering down payment assistance (DPA) to first-time homebuyers to boost new loan originations. SHFA Finances Trending Positively: Fiscal 2014 results demonstrated that SHFAs were financially sound as median ratios, such as net interest spread, net operating revenue (NOR) and debt to equity continued to trend positively. Fitch anticipates that this sound financial performance will continue into fiscal years 2015 and 2016. Deleveraging Increased Equity: SHFAs continued increasing equity positions in fiscal 2014 by generating cash upfront through the sale...
