Standard&Poor's Ratings Services affirmed its 'AA' rating on Los Angeles' series 1997A-1 single-family home mortgage revenue bonds. The outlook is negative. The bonds are secured by Ginnie Mae and Freddie Mac mortgage-backed securities (MBS) and Fannie Mae pass-through certificates. The rating reflects our view of: The sufficiency of mortgage revenues and investment earnings to pay full and timely debt service on the bonds until maturity; The very strong credit quality of the Fannie Mae pass-through certificates and Ginnie Mae and Freddie Mac MBS, which we consider 'AA+' eligible under our ratings criteria; Investments held pursuant to a guaranteed investment contract (GIC) with Caisse des Depots et Consignations (AA/Negative); and A 161.46% asset-to-liability position as of April 22, 2015.
