The long-term ratings on Minnesota Housing Finance Agency's (MHFA) residential housing finance bonds reflect: Very strong financial performance of the bond program, Credit quality of the residential housing finance loan portfolio appropriate for the 'AA' rating level, Loan loss coverage at the 'AA' rating level provided by overcollateralization and a leveraged self-insurance fund, Cash flow strength, and Investments commensurate with the 'AA' rating level. All bonds additionally benefit from the GO pledge of MHFA ('AA+') and the moral obligation pledge of the state of Minnesota ('AAA'). The dual ratings on the convertible option series bonds reflect the investment of bond principal in investment agreements with appropriately rated providers until the mandatory tender dates scheduled for each series. Series 2006I and
