Standard&Poor's Ratings Services lowered its issuer credit rating (ICR) to 'A' from 'A+' on the Colorado Housing and Finance Authority (CHFA). The rating action affects the ratings on all debt supported by the authority's general obligation (GO) pledge. In addition, we revised the outlook on all ratings to stable from negative. The 'A' ICR reflects our view of CHFA's: Low equity ratios, currently the lowest among rated housing finance agencies, or HFAs (CHFA's small equity base translates to capital adequacy ratios far below those of other HFAs); Delinquency and foreclosure rates that are higher than those of most other HFAs and above state averages; and Financial challenges resulting from significant use of variable-rate debt and reliance upon swap
