Standard&Poor's Ratings Services raised its underlying rating (SPUR) and its long-term ratings on Tennessee Housing Development Agency's (THDA) general homeownership program bonds to 'AA+' from 'AA'. At the same time, Standard&Poor's assigned its 'AA+' long-term rating to THDA's $50 million general homeownership bonds series 2009-1. The ratings reflect: Very strong indenture cash flows reflecting asset-to-liability parity of 118% as of July 1, 2008; Very strong credit quality of the single-family loan portfolio with approximately 80% of the loans guaranteed by VA, FHA or USDA Rural Development; Limited exposure to loan loss recoveries associated with private mortgage insurance; Standard's&Poor's opinion that there are sufficient assets and liquid reserves to mitigate projected credit losses at the
