Standard&Poor's Ratings Services has affirmed its 'AA' issuer credit rating (ICR) on Pennsylvania Housing Finance Agency (PHFA). At the same time, Standard&Poor's affirmed its ratings on PHFA's single-family risk retention program and on all debt supported by the agency's general obligation (GO) pledge. The outlook is negative. The ICR is based on our opinion of the following strengths: The agency's large loan loss reserves to protect against losses; Very strong and large asset base; Very high quality investment portfolio; and Strong and active management team with strong legislative support. In our opinion, partially offsetting credit weaknesses include: Decline in profitability in the recent past fiscal years; and Five-year average of key financial ratios under-performing peers. As
