The rating on Pennsylvania Housing Finance Agency's bonds reflects: High quality mortgage loan collateral, which continues to perform well; Loss coverage provided by the agency's leveraged self insurance fund covering estimated loan losses at the 'AA' rating level; Cash flows indicating stable portfolio performance; Investments commensurate with the rating on the bonds; GO pledge of the agency; and A state continuing to exhibit steady economic growth. Bond proceeds will provide funds to fully redeem series 1988V and to make new single-family mortgage loans. The loan portfolio of approximately 38,000 contains mainly conventional loans (57.73%) and FHA-insured loans (35.82%) with small amounts of VA-guaranteed loans (4.19%) and Rural Housing Services loans (2.27%). Of the conventional mortgage loans, 16.87% have loan-to-value ratios
