The ratings on the Tennessee Housing Development Agency's homeownership program bonds are affirmed and reflect: * Credit quality of the single-family loan portfolio, * Bond indenture with impressive financial strength no longer facing a transfer of funds to the state, * Adequacy of reserves for liquidity, * Sufficient loss coverage in the form of excess assets, and * Investments commensurate with the rating on the bonds. The ratings on the bonds are affirmed and a new rating is issued for issue 1997-2, a remarking of a convertible option bond originally issued as a convertible option bond (COB) on May 29, 1997 with a mandatory tender date of June 4, 1998. The agency is electing to remarket the COB into another
