The rating on Illinois Development Finance Authority's bonds reflects: FNMA collateral agreement, Fully funded interest reserve fund based on the maximum rate of interest, Quality of permitted investments, and Asset-to-liability ratio of 103.53% as of June 22, 1998. The bonds are secured by mortgage collateral guaranteed by FNMA. The rating reflects the pledge by FNMA to cover credit and liquidity shortfalls, including failure of the mortgagor to make mortgage note payments and the purchase of bonds in the event of a failed remarketing. FNMA is 'AAA' eligible under Standard&Poor's rating criteria. Due to the strength and stability of the underlying collateral as well as the structure of the deal, the next comprehensive review of this transaction is scheduled
