The ratings on Pennsylvania Housing Finance Agency's (PHFA) bonds reflect: Very strong financial performance and earnings quality, with continued profitability and stable equity levels; The agency's very strong asset base and good reserve position; The high quality of the agency's investment portfolio; The state's stable economic base and housing market; The very strong management team of the agency; and The ability of the agency to demonstrate continued state support while exercising autonomy and independence. PHFA's mandate is to finance mortgage loans for low-to-moderate income residents of the state, as evidenced by its asset base of approximately $3.8 billion, of which 67%, or approximately $2.6 billion is mortgage loans. This level has declined by 8% over the past five fiscal years,
