The 'AAA' and 'AA' long-term ratings on Colorado Housing and Finance Authority's (CHFA) single-family mortgage bonds reflect: The credit quality of the FHA-insured, conventionally insured, and other mortgage loans backing 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+' rating on the class I bonds is based on an SBPA for the purchase price of tenders. This is CHFA's second issue under an open indenture established in 2001. Currently the indenture has approximately $125 million in mortgages, with another $110 million in reservations and projected origination. At least 60% of the mortgage loans purchased with bond proceeds will be FHA-insured,
