Standard&Poor's Ratings Services assigned its 'AA' rating to Tennessee Housing Development Agency's (TDHA) million homeownership program bonds series 2008-1. 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. 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 81.8% of the loans guaranteed by VA or insured FHA or USDA Rural Development; Strong cash flow strength of the bond resolution with asset-to-liability parity at 118.4% as of July 2007; Very strong adequacy of reserves for liquidity; Sufficient loss coverage
