DALLAS (Standard&Poor's) June 13, 2005--Standard&Poor's Rating Services assigned its 'AA' rating to Tennessee Housing Development Agency's $100 million homeownership program bonds series 2005-1A and 2005-1B. The outlook is stable. The rating reflects the very strong credit quality of the single-family loan portfolio, substantial financial strength of the bond resolution, and very strong adequacy of reserves for liquidity. The bond resolution was begun in 1985, and all bonds in the resolution are on parity. All proceeds of this issue will be used to make new single-family mortgage loans. Cash flows were prepared on a stand-alone basis for this issue, reflecting a small reliance on the parity resolution, which is easily covered by substantial overcollateralization. Consolidated cash flows
