Standard&Poor's Ratings Services has affirmed its 'AA' issuer credit rating (ICR) on Pennsylvania Housing Finance Agency (PHFA). At the same time, Standard&Poor's affirmed its ratings on PHFA's single-family risk retention program and on all debt supported by the agency's general obligation pledge. The outlook is negative. The ICR is based on our opinion of the following strengths: The agency's large loan loss reserves to protect against losses; Very strong and large asset base; Very high quality investment portfolio; and Strong and active management team with strong legislative support. In our opinion, partially offsetting credit weaknesses include: Decline in profitability in the recent past fiscal years; and Five-year average of key financial ratios under-performing peers. As of
