S&P Global Ratings affirmed its 'A+' underlying rating (SPUR), with a stable outlook, on Pennsylvania Housing Finance Agency's (PHFA) series 2005A capital fund security revenue bonds, issued on behalf of a pool of six participating local housing authorities in Pennsylvania. The rating reflects our view of: The strong security of pledged federal public housing modernization funds (the capital fund) PHFA receives annually from the U.S Department of Housing&Urban Development (HUD); A bond debt service coverage (DSC) between 2.55x and 3.86x for the six authorities based on fiscal 2016 allocations; The expected DSC of, at least, 1x through maturity after assuming a compounded 5% annual cut in appropriations starting in fiscal 2017 for the life of the bonds, and
