Standard&Poor's Ratings Services affirmed its 'AAA' rating on Southern California Home Financing Authority's bonds. All series of bonds except series 1995B receive partial credit support in the form of a guaranteed investment contract (GIC) provided by AIG Matched Funding Corp. (guaranteed by American International Group Inc.) for the bonds' revenue fund. Despite Standard&Poor's downgrade of AIG to 'A-', we affirmed the rating on the bonds based on our view of the authority's ability to optionally terminate the GICs without adversely affecting its ability to pay debt service on the bonds. We believe that current trustee balances on all series demonstrate that the remaining assets (non-AIG) are sufficient to cover debt service on the bonds through maturity
