The 'SP-1+' rating on Nevada Housing Division's (NHD) single-family mortgage bonds 2002 series 1 and 2 reflects the sufficiency of the invested principal to pay scheduled debt service. Proceeds of this issuance are invested in a guaranteed investment contract with Bayerische Landesbank Girozentrale ('AAA/A-1+') The 'AAA' and 'AA' ratings on NHD's senior and mezzanine single-family mortgage bonds reflect: The quality and historical performance of the mortgages backing the bonds, High-quality investments, Sufficiency of reserves to cover potential credit and liquidity shortfalls as demonstrated in various cash flow scenarios, and A strong legal structure. The 'AA-' rating on subordinate bonds reflects the GO pledge of NHD as the primary security in addition to the mortgage collateral. All tranches are on parity
