Standard & Poor's affirmed its A-plus rating on the Pennsylvania Housing Finance Agency's capital fund security revenue bonds series 2005A and removed its rating from credit watch with negative implications.
The agency issues the bonds on behalf of a pool of seven participating local housing authorities within Pennsylvania. The outlook is stable.
"Removal of the rating from credit watch reflects our receipt of information we had requested from PHFA officials to maintain the rating," said S&P credit analyst Raymond Kim. The Dec. 31, 2014, credit watch placement was due to what S&P considered inadequate information needed to maintain the rating.
S&P cited as strengths the security of pledged federal public housing modernization funds (the capital fund) that PHFA receives annually from the Department of Housing and Urban Development; and bond debt service coverage between 2.41 times and 8.4 times for the seven authorities based on the 2014 allocations.
Offsetting factors, it said, reduced appropriations of capital fund program monies by Congress and the lack of any secondary security for bondholders.
