The long-term ratings on Colorado Housing and Finance Authority's (CHFA) 2004A class I and class II bonds and outstanding class I and II multifamily project bonds are based on the following factors: High quality of credit, based on approximately 230 first mortgage loans for affordable multifamily properties in Colorado; Sufficient overcollateralization to maintain the ratings throughout bond maturity; Strong historical oversight and asset management by the CHFA of properties in its portfolio; and A debt service reserve funded at a minimum of eight months of maximum loan principal and interest on all insured loans and 12 months of principal and interest on uninsured loans. These credit strengths are offset by a high delinquency rate on the loan portfolio. The short-term
