The long-term ratings on Minnesota Housing Finance Agency's (MHFA) residential housing finance bonds reflect: Very strong financial performance and credit quality of the residential housing finance bond program, High levels of loan loss coverage provided by overcollateralization and a leveraged self-insurance fund, Cash flow strength, Investments commensurate with the rating on the bonds, and The GO pledge of MHFA ('AA+') and its top-tier status. All bonds additionally benefit from the moral obligation pledge of Minnesota ('AAA'). The dual ratings on the convertible option series bonds, including the newly issued series 2004 I, 2004J, and 2004K bonds, reflect the investment of bond principal in investment agreements with appropriately rated providers until the mandatory tender dates scheduled for each series. The short-term
