The ratings on Tennessee Housing Development Agency's bonds reflect: Very strong credit quality of the single family loan portfolio, A bond indenture with very strong financial strength, Very strong 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 the remarketing of the $50 million issue 1998-1, initially a convertible-option bond, which is being remarketed as a long-term bond. Proceeds of the $40 million issue 1999-1A will be used to make a deposit to the loan fund to make single-family loans for a total deposit to the loan fund of $90 million for
