The ratings on the Tennessee Housing Development Agency's homeownership program bonds are affirmed and 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 new ratings are assigned to series 1998-3C, which is a convertible option bond being remarketed to long-term, and series 1999-3. Both issues, totaling $150 million, will be used to make new single-family loans. Cash flows run with 60-day lags indicate the capacity to pay scheduled debt service plus fees on a full and timely basis
