The rating on Pennsylvania Housing Finance Agency's (PHFA) series 2003-81 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 The general obligation 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, and pay assorted costs of issuance. Approximately $99 million will be used to purchase new single-family loans. The loan portfolio of approximately 35,400 contains mainly conventional loans (50.76%), and FHA-insured loans (41.77%), with small amounts
