Summary: Minnesota Housing Finance Agency; General Obligation

S&P Global Ratings affirmed its 'AA+' issuer credit rating (ICR) on Minnesota Housing Finance Agency (MHFA). The outlook is stable. The ICR reflects our view of the following: A strong loan portfolio, reflecting high asset quality with very low exposure to nonperforming assets; A conservative investment strategy, as evidenced by the continued acquisition of low-risk assets via mortgage-backed securities (MBS) purchases; and A very strong executive management team dedicated to proactive and strategic planning. Offsetting these strengths, in our opinion, are the agency's falling profitability ratios, which could be a risk over the medium-to-long term: Narrowing margins on net interest, due to low interest rates; and Return on average asset that declined to 0.5% from 1.0% in 2020. The stable

...S&P Global Ratings affirmed its '##+' issuer credit rating (ICR) on Minnesota Housing Finance Agency (MHFA). The outlook is stable. The ICR reflects our view of the following: + A strong loan portfolio, reflecting high asset quality with very low exposure to nonperforming assets; + A conservative investment strategy, as evidenced by the continued acquisition of low-risk assets via mortgage-backed securities (MBS) purchases; and + A very strong executive management team dedicated to proactive and strategic planning. Offsetting these strengths, in our opinion, are the agency's falling profitability ratios, which could be a risk over the medium-to-long term: + Narrowing margins on net interest, due to low interest rates; and + Return on average asset that declined to 0.5% from 1.0% in 2020....

Summary