Standard&Poor's Rating Services assigned its 'AA' rating to Tennessee Housing Development Agency's $42.5 million homeownership program bonds series 2005-1C. The ratings on the series 2005-1A and 2005-1B and an affirmation of the resolution rating were released on June 9, 2005. Upon pricing of those bonds, the 2005-1A was split to add the series 2005-1C. The rating reflects: 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 investment. For the full rationale, please see "Tennessee Housing Development Agency", RatingsDirect June 13, 2005. The stable outlook reflects the expectation that the strength of the
