The 'A+' issuer credit rating and long-term ratings on Colorado Housing and Finance Authority's (CHFA) general obligation debt are affirmed based upon the following factors: Strong mortgage origination, Sufficient equity position, Good financial and asset management, Average GO debt exposure, and Strong and prudent authority management. The outlook is revised to 'stable' from 'positive' due to adequate but declining profitability and earnings. CHFA's financial ratios declined in fiscal 2002 primarily in return on assets, return on equity, and net interest margin, which followed the trend of other housing finance agencies (HFAs) that faced high prepayments and historically low rates of return on fixed-rate investments. Net income decreased 13% in 2002, following a drop of 21% in 2001. The decline in
