DALLAS (Standard&Poor's) March 29, 2006--Standard&Poor's Rating Services assigned its 'AA' rating to Tennessee Housing Development Agency's $100 million homeownership program bonds series 2006-1. At the same time, Standard&Poor's affirmed its 'AA' rating and 'AA' underlying rating (SPUR) on the agency's outstanding bonds. The outlook is stable. The 'AA' rating reflects very strong credit quality of the single-family loan portfolio, with about 83% of the loans insured by FHA or guaranteed by VA; substantial financial strength of the bond resolution with asset-to-liability parity at 117%; 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
