The rating on Minnesota Housing Finance Agency's (MHFA) bonds reflects: * Strong financial performance and high credit quality of the mortgage loans backing the bonds; * Sufficient loan loss coverage provided by overcollateralization and a self-insurance fund; * Cash flow strength; and * MHFA's status as Top-Tier. The dual ratings on the agency's convertible option bonds reflect sufficiency of the invested bond principal to pay scheduled debt service and purchase price for mandatory tenders. The parity resolution continues to perform well, with an asset-to-liability parity ratio over 104%, which translates to over $60 million in excess assets. Stand-alone cash flow projections for the 1999B-1999D bonds, run with a 30-day lag, indicate the capacity of the collateral to pay full and
