Standard&Poor's Ratings Services assigned its 'AA' rating to Tennessee Housing Development Agency's (TDHA) $100 million homeownership program bonds series 2007-1. At the same time, Standard&Poor's affirmed its 'AA' standard long-term rating and 'AA' underlying rating (SPUR) on the agency's outstanding bonds. The 'AA' rating reflects: Very strong credit quality of the single-family loan portfolio, with about 81% of the loans insured by FHA or guaranteed by VA; Substantial financial strength of the bond resolution with asset-to-liability parity at 118% as of July 2006; Very strong adequacy of reserves for liquidity; Sufficient loss coverage in the form of excess assets; and High quality investments. The bond resolution was begun in 1985, and all bonds in the resolution
