Standard&Poor's Ratings Services affirmed its 'A+' underlying rating (SPUR) on Pennsylvania Housing Finance Agency's (PHFA) series 2005 Assured Guaranty Municipal Corp. (AGM)-insured capital fund security revenue bonds. The outlook is negative. The bonds are issued on behalf of a pool of seven participating local public housing authorities (PHAs). The rating reflects our view of: The strong security of pledged federal public housing modernization funds (the capital fund) that PHFA receives annually from the U.S. Department of Housing&Urban Development (HUD); The debt service coverage (DSC) between 2.23x and 7.75x for the seven authorities, based on 2013 allocations; The anticipated DSC at least 1x through maturity, after assuming a compounded 5% annual cut in appropriations starting in 2014
