Blog: North Dakota Housing Finance Agency — Moody’s assigns Aa1 to NDHFA’s Housing Fin. Prog. Bds. 2021 Ser. A; outlook is stable – Yahoo Finance

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Rating Action: Moody’s assigns Aa1 to NDHFA’s Housing Fin. Prog. Bds. 2021 Ser. A; outlook is stableGlobal Credit Research – 30 Apr 2021New York, April 30, 2021 — Moody’s Investors Service has assigned a Aa1 rating in connection with the proposed $120 million North Dakota Housing Finance Agency’s (the “Agency”) Housing Finance Program Bonds, Mortgage Finance Program, 2021 Series A (Non-AMT). Moody’s also maintains the Aa1 ratings on all of the Agency’s outstanding Housing Finance Program Bonds. The outlook is stable.RATINGS RATIONALEThe Aa1 rating reflects the program’s strong financial position and loan portfolio characteristics. These factors offset risks associated with the variable rate debt in the indenture and the increased level of loan forbearance, delinquencies and foreclosures as a result of COVID-19.RATING OUTLOOKThe stable outlook is based on our expectation that the strong financial performance will continue even as the program continues to leverage and as the portfolio has elevated rates of loan forbearance due to COVID-19.FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATING- Growth of financial metrics along with strong portfolio performanceFACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING- Erosion of financial position, deterioration in portfolio performance and/or a significant increase in variable rate debtLEGAL SECURITYThe bonds are secured by the revenues and assets pledged under the Agency’s 1994 Resolution which consist primarily of interest on first lien mortgages and investments. The bonds are full faith and credit revenue obligations of the North Dakota Housing Finance Agency (A1/Stable), payable out of any of the Agency’s revenues or assets legally available and will be secured by loan revenues and assets pledged to the Resolution. The Resolution establishes a Debt Service Reserve Fund and provides for funding of such reserve in an amount at least equal to 3% of outstanding principal balance of program loans. Funds in the Debt Service Reserve Fund are available to pay debt service on the bonds to the extent that sufficient funds are not available. The Resolution also establishes a Collateral Account which provides for funding such that a 1.02 program asset to debt ratio is achieved.USE OF PROCEEDSThe proceeds of the bonds will be used to purchase, or reimburse the Agency for purchasing, single family mortgage loans and make deposits to the debt service reserve.PROFILEThe obligor is the Housing Finance Program General Bond Resolution of 1994. This is a parity bond resolution used for the purpose of establishing and maintaining housing finance programs for the Agency.METHODOLOGYThe principal methodology used in this rating was US Housing Finance Agency Single-Family Housing Methodology published in October 2019 and available at https://ift.tt/2XoOOBM. Alternatively, please see the Rating Methodologies page on http://www.moodys.com for a copy of this methodology.REGULATORY DISCLOSURESFor further specification of Moody’s key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. Moody’s Rating Symbols and Definitions can be found at: https://ift.tt/336Z1F8 ratings issued on a program, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series, category/class of debt, security or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody’s rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider’s credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on http://www.moodys.com.The rating has been disclosed to the rated entity or its designated agent (s) and issued with no amendment resulting from that disclosure.This rating is solicited. Please refer to Moody’s Policy for Designating and Assigning Unsolicited Credit Ratings available on its website https://ift.tt/349xDIr disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.Moody’s general principles for assessing environmental, social and governance (ESG) risks in our credit analysis can be found at https://ift.tt/3aPfqCt Global Scale Credit Rating on this Credit Rating Announcement was issued by one of Moody’s affiliates outside the EU and is endorsed by Moody’s Deutschland GmbH, An der Welle 5, Frankfurt am Main 60322, Germany, in accordance with Art.4 paragraph 3 of the Regulation (EC) No 1060/2009 on Credit Rating Agencies. Further information on the EU endorsement status and on the Moody’s office that issued the credit rating is available on http://www.moodys.com.The Global Scale Credit Rating on this Credit Rating Announcement was issued by one of Moody’s affiliates outside the UK and is endorsed by Moody’s Investors Service Limited, One Canada Square, Canary Wharf, London E14 5FA under the law applicable to credit rating agencies in the UK. Further information on the UK endorsement status and on the Moody’s office that issued the credit rating is available on http://www.moodys.com.Please see http://www.moodys.com for any updates on changes to the lead rating analyst and to the Moody’s legal entity that has issued the rating.Please see the ratings tab on the issuer/entity page on http://www.moodys.com for additional regulatory disclosures for each credit rating. Rachael McDonald Lead Analyst Housing Moody’s Investors Service, Inc. 7 World Trade Center 250 Greenwich Street New York 10007 US JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Florence Zeman Additional Contact Housing JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Releasing Office: Moody’s Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 © 2021 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.CREDIT RATINGS ISSUED BY MOODY’S CREDIT RATINGS AFFILIATES ARE THEIR CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY’S (COLLECTIVELY, “PUBLICATIONS”) MAY INCLUDE SUCH CURRENT OPINIONS. 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