The rating on Colorado Housing and Finance Authority's (CHFA) series A moral obligation bonds is affirmed, based the following factors: Good performance of the loans backing the bond issuance; A fully funded debt service reserve fund sized at maximum annual debt service; and General credit characteristics of the state, including low debt burden, good financial position, and a diversified and growing economy. The rating for CHFA's 1994 moral obligation debt is dependent upon the pledge of the state to replenish the debt service reserve fund following any draw. To date, the debt service reserve fund has not been drawn on, and all 27 outstanding loans funded with bond proceeds are current and performing well.
