Standard&Poor's Ratings Services affirmed its 'AA' long-term rating on Tennessee Housing Development Agency's (THDA) mortgage finance program bonds series 2003A. The outlook is stable. The rating reflects: Substantial excesses in the resolution that are able to support forecast losses at the 'AA' rating level, Very strong adequacy of reserves for liquidity, Adequate performance of underlying mortgage loans despite higher-than-average delinquency statistics, High-quality investments, and Potential recourse to the moral obligation of the State of Tennessee (AA+). The general resolution was begun in 1974, and the outstanding bonds are supported by single-family whole loans, multifamily loans, and investments. The series 2003A bond proceeds were used to refund existing series 1993A bonds on Oct. 1, 2003. THDA has not actively
