The 'AA' rating on Colorado Housing and Finance Authority's (CHFA) single-family program senior bonds is based on: The very high quality of the mortgage collateral, which consists of FHA-insured and VA-guaranteed mortgage loans, primarily; The conscientiousness and experience of the state housing finance authority that oversees the performance of the loan portfolio; The sufficiency of revenues and assets to cover all debt service and fees until maturity, as demonstrated by various stressful cash flow scenarios; Overcollateralization at the 'AA' rating level; and A strong legal structure. The 'A+' rating on CHFA's series 2000E subordinate bonds is based upon a GO pledge by the authority ('A+'/stable) as well as the mortgage collateral. The bonds are being issued on a stand-alone basis
