The ratings on the Tennessee Housing Development Agency's bonds reflect: Credit quality of the single family loan portfolio, A bond indenture with impressive financial strength, 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 series 1997-2 bond, initially a convertible option bond with mandatory tender date of Aug. 26, 1999, that is being remarketed as a long-term bond. Proceeds of the remarketing of the series 1997-2 bond will be used to redeem the convertible option bonds issued under the indenture and to make a deposit to the loan
