The ratings on Minnesota Housing Finance Agency's (MHFA) bonds reflect: Very strong financial performance and credit quality of the mortgage loans backing the bonds; Sufficient loan loss coverage provided by overcollateralization and a leveraged self-insurance fund; Cash flow strength; and MHFA's status as Top-Tier. The dual ratings on the agency's short-term 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 equates to over $60 million in excess assets. Consolidated cash flow projections for the entire resolution indicate the capacity of the collateral to pay full and timely debt service plus fees through final bond maturity.
