The rating on Pennsylvania Housing Finance Agency's (PHFA) series 2003-79 and 2003-80 bonds reflects: Very strong loss coverage protection provided by the agency's leveraged self insurance fund covering estimated loan losses at 'AA' rating level, Cash flows indicating stable portfolio performance, Investments commensurate with the rating on the bonds, and GO pledge of the agency, which currently has a 'AA' issuer credit rating. Bond proceeds, along with an agency contribution from available funds in the indenture, will provide funds to originate new single-family mortgage loans, refund previous issues, and pay assorted costs of issuance. Approximately $90 million will be used to purchase new single-family loans. The loan portfolio of approximately 35,560 contains mainly conventional loans (50.98%), and FHA-insured loans (41.58%),
