The rating on Portland, Ore.'s bonds reflects: * Extremely strong credit enhancement of the mortgage backing the bonds through a Fannie Mae MBS guarantee; * 'AAA'-rated investments; and * Cash flows evidencing the full and timely payment of debt service and program fees. Upon closing on the bonds, proceeds will be used to fund a $12.725 million mortgage for a 228-unit rental housing project in Portland. The mortgage will be backed by a collateral agreement from Fannie Mae, which is 'AAA' eligible based on its unsecured creditworthiness as well as its relationship with the federal government. Fannie Mae pledges under the collateral agreement and MBS to cover missed mortgage payments and any shortfalls following an involuntary mortgage prepayment, or acceleration
