The ratings on Colorado Housing and Finance Authority's (CHFA) 2002C and outstanding class I and class II multifamily project bonds are based upon the following factors: High quality of credit based on approximately 125 first mortgage loans for affordable multifamily properties in Colorado; Strong performance of properties, as evidenced by limited defaults and losses for the portfolio; Sufficient overcollateralization to maintain the ratings throughout bond maturity; CHFA's strong historical oversight and asset management of the properties in its portfolio; and A debt service reserve funded at no less than eight months maximum loan principal and interest on all loans. The rating on the class III bonds is based upon a GO pledge by CHFA, which carries an 'A+' rating with
