NEW YORK (Standard&Poor's) Oct. 6, 2006--Standard&Poor's Ratings Services assigned its 'AA' rating to Tennessee Housing Development Agency's $100 million homeownership program bonds series 2006-3. At the same time, Standard&Poor's affirmed its 'AA' standard long-term rating and 'AA' underlying rating (SPUR) on the agency's outstanding bonds. The outlook is stable. The 'AA' rating reflects the very strong credit quality of the single-family loan portfolio, with about 82% of the loans insured by FHA or guaranteed by VA; substantial financial strength of the bond resolution with asset-to-liability parity at 118%; and the very strong adequacy of reserves for liquidity. The bond resolution was begun in 1985, and all bonds in the resolution are on parity. All
