AFFIRMED CREDIT PROFILE Top-tier status affirmed Issuer credit rating AA OUTLOOK: STABLE The rating on Pennsylvania Housing Finance Agency's (PHFA) debt reflects: The agency's strong asset base and good reserve position; Consistent financial performance, continued profitability, and stable equity levels; The depth and breadth of PHFA management; A stable Pennsylvania economy and housing market; and An ability of the agency to demonstrate continued state support while exercising autonomy and independence. The agency's mandate is to finance mortgage loans for low-to-moderate income residents of the state as evidenced by its asset base of approximately $2.87 billion--of which 72%, or $2.1 billion, are mortgage loans. Despite the significant increase in loan originations, liquidity remains solid at 21% of total assets. Asset quality
