The 'AAA/A-1+' rating on Washington State Housing Finance Commission's variable-rate demand, multifamily housing revenue refunding bonds, series 2004A and 2004B, issued on behalf of the Highlander Apartment Project, reflects the delivery of a Freddie Mac direct pay credit enhancement agreement. Freddie Mac is 'AAA'-eligible based on its relationship with the federal government. The credit enhancement agreement will provide credit coverage of principal and interest due on the bonds and liquidity coverage in the event of a failed remarketing of the bonds. The credit facility covers principal on the bonds plus up to 35 days of accrued interest at the maximum rate for bonds in the variable-rate mode and up to 189 days for bonds in the reset rate or fixed-rate
