The 'AAA/A-1+' rating assigned to the Washington State Housing Finance Commission's variable-rate demand pooled housing refunding revenue bonds, series 2006 A and B, reflects the extremely strong credit and liquidity enhancement of the bonds through 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 37 days of accrued interest at the maximum rate for bonds in the variable-rate mode, and up to 189 days for bonds in the
