The issuer credit rating (ICR) on the Minnesota Housing Finance Agency (MHFA), as well as the rating on MHFA's bonds, are affirmed based on the following: Extremely sound financial operations with strong capital adequacy ratios, Good overall asset quality with prudent oversight, A stable and strong management team, Clear indications of state support for the agency's operations and mission, and The state's strong economic performance. Credit risks include potential weakening of the agency's section 8 portfolio due to rent freezes by HUD, and slower production in single-family loan origination because of bonding considerations, which could hurt the agency's financial strength. The affirmation of MHFA's top-tier status reflects the agency's ability and willingness to provide additional credit strength to all rated
