S&P Global Ratings assigned its 'AA+' rating and stable outlook to Pennsylvania Housing Finance Agency's (PHFA) series 2017-125A (alternative-minimum tax) and 2017-125B (nonalternative-minimum tax) single-family mortgage revenue bonds, issued under the agency's single-family parity indenture, and affirmed its 'AA+'; 'AA+/A-1'; and 'AA+/A-1+' ratings, with a stable outlook, on all other issues under the parity resolution. The 'AA+' rating reflects our opinion of PHFA's: Credit quality of its loan insurance, which we consider very strong, since 67% of loans carry federal insurance or guarantees that benefit from the nation's full-faith-and-credit pledge; Cash flows with various prepayment schedules, as well as an expected $400-million convertible-option-bond (COB) direct-placement issuance possibly before year-end, demonstrating, what we consider, sufficient equity to cover potential loan losses
