Standard&Poor's Ratings Services assigned its 'AA' rating to Tennessee Housing Development Agency's homeownership program bonds series 2007-3. 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 ratings reflect: Very strong credit quality of the single-family loan portfolio, with about 79% 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 are on parity. Proceeds
