Standard&Poor's Ratings Services assigned its 'AA+' rating to Tennessee Housing Development Agency's (THDA) general homeownership program bonds series 2009-2. At the same time, Standard&Poor's affirmed its 'AA+' rating on all other bonds on parity in the resolution. The rating reflects Standard&Poor's opinion as to: Very strong indenture cash flows reflecting asset-to-liability ratio of 118% based on consolidated cash flows; 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; Sufficiency of assets and liquid reserves; The resolution's recourse to the moral obligation of the state of Tennessee, currently rated 'AA+'
