Standard&Poor's Ratings Services assigned its 'AA+' long-term rating to Tennessee Housing Development Agency's (THDA) residential finance program bonds, series 2013-1A, 2013-1B, and 2013-1C (the issue). The outlook is stable. The rating reflects our view of: Very strong indenture cash flows showing minimum asset-liability parity of 112%; A single-family whole loan portfolio of very strong credit quality, with 85% of loans (by value) either guaranteed by the U.S. government or with a loan-to-value ratio (LTV) below 78%; The sufficiency of liquid reserves; Very high-quality investments commensurate with the rating on the bonds; and Legal provisions and program management consistent with our criteria. This issue is the first under THDA's new General Residential Finance Program Bond Resolution, which was adopted
