The 'AAA' rating on Portland, Ore.'s multifamily housing revenue bonds is affirmed following the conversion of a Fannie Mae collateral agreement to a Fannie Mae mortgage backed security (MBS) on Nov. 16, 2001. The rating reflects the extremely strong credit enhancement of the mortgage backing the bonds through a Fannie Mae MBS guarantee, and cash flows evidencing the full and timely payment of debt service and program fees. Bond proceeds were used to fund a mortgage that was backed by a collateral agreement from Fannie Mae. The outstanding mortgage balance is $23 million. Upon satisfaction of conditions to conversion listed in the trust indenture, the collateral agreement converted to an MBS. Fannie Mae's commitment under the MBS guarantees full and
