The 'AAA/A-1+' rating on Colorado Housing and Finance Authority's multifamily housing revenue bonds, series 1996 C, G and J, was affirmed based on the strength of the Fannie Mae collateral agreements securing the bonds. Each project is separately collateralized; assets from one project are not used to cover liabilities on any other. All issues affirmed have short-term investments commensurate with their ratings. In addition, all series exhibit asset-to-liability parity greater than100%. The Fannie Mae collateral agreements provide credit and liquidity support for each transaction. Under the collateral agreement, Fannie Mae is obligated to make regularly scheduled mortgage payments before interest payment dates if the borrower misses a mortgage payment. Fannie Mae provides liquidity support by covering the purchase price of
