Standard&Poor's Ratings Services has lowered its issuer credit rating on Pennsylvania Housing Finance Agency (PHFA) by one notch to 'AA-' from 'AA'. At the same time, Standard&Poor's has lowered its respective ratings on PHFA's single-family risk retention program and all debt supported by the agency's general obligation pledge by one notch to 'AA-' and 'AA-/A-1' from 'AA' and 'AA/A-1'. Finally, Standard&Poor's revised its outlook on all issues to stable from negative. The lowering of the ratings reflects our view of: The profitability decline to levels below PHFA's peers; and The increase in foreclosures and delinquencies (non-performing assets) in PHFA's loan portfolio; and The weakened economic base, due to job losses brought on by the
