The rating on Pennsylvania Housing Finance Agency's bonds reflect: 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 partially refund certain series, originate new single-family mortgage loans, and pay assorted costs of issuance. The loan portfolio (approximately 40,000 loans) contains mainly conventional loans (56.66%) and FHA-insured loans (36.77%), with small amounts of VA-guaranteed loans (4.14%) and RHS loans (2.43%). Of the conventional mortgage loans,
