The 'AAA' and 'AA' long-term ratings on Colorado Housing and Finance Authority's (CHFA) single-family mortgage bonds reflect: The high credit quality of the FHA-insured, single-family mortgage loans backing the majority of the bonds; High-quality investments; Sufficiency of reserves to cover potential credit and liquidity shortfalls; Substantial overcollateralization, as required in bond documents; and A strong legal structure. The short-term 'A-1'-plus rating on the class I bonds is based on an SBPA from Landesbank Hessen-Thueringen Girozentrale ('A-1+') for the purchase price of tenders. CHFA is issuing the series 2001AA bonds under an open indenture to refinance a portfolio of $92 million single-family mortgage loans and to finance the origination of an additional $57 million in loans. At least 60% of the
