Standard&Poor's Rating Services affirmed its 'AA' issuer credit rating (ICR) on Pennsylvania Housing Finance Agency (PHFA). The rating is based on the following strengths: The agency's very strong asset base and strong reserve position; The high quality of its investment portfolio; Improving financial performance; Stable and active management team with strong legislative support; and The state's stable economic base and housing market. PHFA's mandate is to finance mortgage loans for low-to-moderate income residents of the state, as evidenced by its asset base of approximately $4.4 billion, of which 75%, or approximately $3.8 billion is mortgage loans. This level has increased over the past three fiscal years, and is now approximately $507 million higher than in fiscal 2002. Mortgage
