Minnesota Housing Finance Agency's (MHFA) 'AA+' issuer credit rating (ICR) and the ratings on its related debt reflect the financial strength of the agency and its solid overall operations. General credit strengths include: Very strong financial performance, marked by strong capital adequacy ratios; Excellent overall asset quality with prudent oversight; Consistently strong management; Ongoing state support for the agency's operations and mission; and The state's generally strong economic position. Changes in the agency's risk profile include shrinkage in the size of the single-family mortgage portfolio due to high prepayments (although this trend reversed in fiscal 2005), reduced use of FHA insurance in single-family originations, and the increased use of variable-rate debt. Ongoing weakening of the agency's Section 8 portfolio due
