NEW YORK (Standard&Poor's) June 11, 2002--Standard&Poor's assigned its double-'A' rating to Tennessee Housing Development Agency's $85 million bonds, reflecting the very strong credit quality of the single-family loan portfolio, substantial financial strength of the bond resolution, sufficient loss coverage in the form of excess assets, and high quality investments. The outlook is stable. Standard&Poor's also affirmed its double-'A' rating on the agency's $1.3 billion general homeownership program bonds resolution. Additionally, Standard&Poor's affirmed its double-'A' underlying rating (SPUR) on the agency's $111.5 million homeownership program bonds, which are insured by Ambac and MBIA, and therefore, are rated triple-'A'. Cash flows were prepared on a stand-alone basis for this issue, reflecting a small reliance
