The ratings on Tennessee Housing Development Agency's bonds reflect: Very strong credit quality of the single-family loan portfolio, Substantial financial strength of the bond resolution, Very strong adequacy of reserves for liquidity, Sufficient loss coverage in the form of excess assets, and High quality investments. Standard&Poor's is aware of the possibility of the state withdrawing money from this resolution in an effort to assist with its continuing budget deficit. Should such a withdrawal occur, Standard&Poor's will require cash flows reflecting the withdrawal for all stress scenarios. State representatives have indicated to Standard&Poor's that their intention, should they withdraw funds, would be to withdraw only an amount that would allow for rating maintenance of the
