The 'AA' Standard&Poor's underlying rating (SPUR) on Pennsylvania Housing Finance Agency's (PHFA) capital fund security revenue bonds series 2005A, issued on behalf of a pool of seven participating local housing authorities in the state of Pennsylvania has been affirmed. These bonds are insured by Financial Security Assurance Inc. (AAA/Watch Neg). The SPUR rating reflects: The strong security of pledged federal public housing modernization funds (the "capital fund") that each authority receives annually from HUD; Demonstrated HUD support for the transaction, limiting the risk of any sanctions that can jeopardize the flow of funds to bondholders; A fully funded debt service reserve fund sized at maximum annual debt service for each authority; The sound legal structure of the transaction,
