Standard&Poor's Ratings Services assigned its 'AA' rating to Tennessee Housing Development Agency's (THDA) homeownership program bonds series 2008-4A and 2008-4B. Concurrently, Standard&Poor's affirmed its 'AA' rating on the agency's outstanding bonds. Proceeds of the new issuance will be used to make new single-family mortgages and refund a portion of the agency's prior notes. The ratings reflect: Very strong credit quality of the single-family loan portfolio with approximately 80% of the loans guaranteed by VA, FHA or USDA Rural Development; Consolidated cash flows with an opening asset-to-liability parity ratio of 118%; Excess assets sufficient to support loss coverage stresses; High quality investments; and A potential recourse to the moral obligation of the state of Tennessee, currently rated
