The rating on Colorado Housing and Finance Authority's (CHFA) senior series 2000B single-family mortgage program bonds is based upon: The high quality of the mortgage collateral, consisting primarily of FHA-insured and VA-guaranteed mortgage loans; Oversight of the loan portfolio by a conscientious and experienced state housing finance authority; Various stressful cash-flow scenarios, which demonstrate the sufficiency of revenues and assets to cover all debt service and fees until maturity; Overcollateralization at the 'AA' rating level; and A strong legal structure. The rating on CHFA's series 2000B 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 to provide funds for the purchase of
