The assigned 'AAA' long-term rating on Colorado Housing and Finance Authority's (CHFA) series 2006B-1, 2006B-2, and 2006B-3 bonds and existing class I single-family mortgage bonds reflects: Substantial overcollateralization, exceeding 113% on the senior class I bonds; The extremely strong credit quality of the FHA-insured, conventionally insured, other insured, and uninsured mortgage loans backing the bonds; Sufficiency of reserves to cover potential credit and liquidity shortfalls; Very high-quality investments; and The ability of the cash flows to withstand swap risks in accordance with Standard&Poor's Ratings Services' criteria. The short-term 'A-1+' rating on the class I bonds was based on a SBPA from DEPFA Bank plc ('AA-/A-1+') for the purchase price of tenders on the series 2006B-1, 2006B-2, and 2006B-3
