The rating on Tennessee Housing Development Agency's bonds is affirmed and continues to reflect: * The moral obligation pledge of the state of Tennessee, * Quality of investments, and * Excesses under the resolution. The bonds are supported by a pool of approximately 12,200 mortgage loans, investments, and the moral obligation pledge of the state of Tennessee ('AA+'/positive). The moral obligation can be called upon to replenish funds in the capital reserve fund should the fund fall below its requirement, which is set equal to maximum annual debt service on the bonds. In addition to the $439 million in loans under the resolution there are $179 million in cash and investments. The issuer uses a variety of investments for funds
