The 'A+' issuer credit rating and long-term ratings on Colorado Housing and Finance Authority's (CHFA) GO debt are affirmed, based upon the following factors: Strong mortgage origination, Sufficient equity position, Good financial and asset management, Improving asset quality, and Strong and prudent authority management. These credit strengths are offset by the agency's increased GO debt exposure and weakened leverage position in fiscal 2003. CHFA's return on assets ratios declined in fiscal 2003, following the trend of other housing finance agencies (HFAs) that faced high prepayments and historically low rates of return on fixed-rate investments. On the other hand, CHFA experienced increases in its return on equity and net interest margin ratios, unlike many other state HFAs. Net income increased 10%
