...S&P Global Ratings affirmed its '##+' issuer credit rating (ICR) on the Minnesota Housing Finance Agency (MHFA) and its '##+' ratings on the agency's related debt. At the same time, S&P Global Ratings affirmed its 'A-1+' short-term rating where appropriate, reflecting the rating on the bonds' liquidity providers in those cases. The outlook is stable. The ICR reflects our view of the following: + A strong loan portfolio, reflecting high asset quality and a recent return to a growing equity position; + A conservative investment strategy, as evidenced by the continued acquisition of low-risk assets via mortgage-backed securities (MBS) purchases; + A very strong executive management team dedicated to proactive and strategic planning; and + A record of strong state support for MHFA's operations and mission. Offsetting these strengths, in our opinion, are the agency's below-average leverage ratio (equity to assets) compared with that of similarly rated peers, and declining profitability. MHFA's...
