Fitch Affirms Alaska HFC Governmental Purpose Bonds 2001 Series A & B at 'AAA'; Outlook Stable
NEW YORK--()--Fitch affirms the long- term rating on the following Alaska Housing Finance Corporation (AHFC or the corporation) Governmental Purpose Bonds:
--$126.2 million Governmental Purpose Bonds, Series 2001 A & B at 'AAA'
The bonds have a Stable Rating Outlook.
The security for the bonds is primarily the program obligations of the mortgage loans, investments and reserves held in the program, and revenues of the program. Additionally, the bonds are general obligations of AHFC.
KEY RATING DRIVERS
OVER-COLLATERALIZATION: As of Dec. 31, 2012, the program had over-collateralization of 201%.
INSURED LOAN PORTFOLIO: The loan portfolio is 51% federally insured by the following insurance providers: FHA (28%), VA (14%), RD (6%), and HUD (3%).
LOAN PORTFOLIO PERFORMANCE: The loan portfolio is performing adequately, with a 60+ day delinquency rate of 3%.
MANAGEMENT OVERSIGHT: AHFC has a well-tenured management staff with a successful history of administering single family programs.
GEOGRAPHIC CONCENTRATION: Approximately 58% of the loan portfolio lies in the three locations of: Anchorage (36%), Wasilla/Palmer (12%), and Fairbanks (10%).
OIL DEPENDENCY: The Alaskan economy is heavily dependent on the oil industry.
REMOTE CREDIT RISKS: Credit risks to the GPB 2001 A/B bonds are remote given the substantial amount of over-collateralization within the program.
The 'AAA' rating on the bonds reflects the high amount of over-collateralization, the performance of the loan portfolio, and management oversight. As of Dec. 31, 2012, the program's outstanding bonds are primarily secured by $134 million in investments and $100 million in loans. The loan portfolio is performing adequately, with a 60+ day delinquency rate of 3%. The loan portfolio is insured by: FHA (28%), VA (14%), RD (6%), PMI Providers (5%), and HUD (3%). The remaining 44% of the portfolio is uninsured. Credit concerns stem from the geographic concentration of the loan portfolio and Alaska's dependency on the oil industry; however concerns are largely mitigated through the high levels of over-collateralization within the program.
The bonds are variable-rate bonds which bear interest in a weekly mode. AHFC acts as the liquidity provider for the bonds, utilizing their self-liquidity program which Fitch currently rates 'F1+'. For information regarding AHFC's short term rating, please see the press release titled, 'Fitch Affirms Alaska Housing Finance Corp.'s Short Term Rating at F1+' dated April 04, 2013 available at 'www.fitchratings.com'.
Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.
Posted: April 4, 2013