The 'AAA' rating on Portland, Ore.'s multifamily housing revenue bonds is affirmed due to the conversion of a Fannie Mae collateral agreement to a Fannie Mae MBS on Sept. 10, 2002. 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. Fannie Mae is 'AAA'-eligible based on its relationship with the federal government. Bond proceeds were used to fund a mortgage that was backed by a collateral agreement from Fannie Mae. The outstanding mortgage balance will be $9.477 million, less than the $12.725 million anticipated when the bonds were issued in 1999. The reduction in
