The 'AAA' and 'AA' long-term ratings on Colorado Housing and Finance Authority's (CHFA) single-family mortgage bonds reflect: The credit quality of the FHA-insured, conventionally insured, and other mortgage loans backing the bonds; High-quality investments; Sufficiency of reserves to cover potential credit and liquidity shortfalls; Substantial overcollateralization, as required in bond documents; and A strong legal structure. The 'A+/positive' long-term rating is based on the general obligation of the CHFA. The short-term 'A-1+' rating on the class I bonds is based on an SBPA from the Lloyds TSB Bank PLC ('A-1+') for the purchase price of tenders. The 'SP-1+' rating on the 2001B-6 bonds is based on a guaranteed investment contract provided by Transamerica Life Insurance and Annuity Co. This is
