MEDIA
RELEASE
Contact: Brandon Laster, Public Information Officer
(816) 759-6692
Release No. 98-04-05
April 20, 1998
MHDC ASSIGNED AA ISSUER CREDIT RATING BY STANDARD & POOR'S
The Missouri Housing Development Commission has been assigned Standard & Poor's AA issuer credit rating based on its own financial strength. In a release to the media April 15, S&P cited several factors considered in MHDC's rating, including:
The low risk profile of the commission's asset base;
High quality of investments;
Strong net interest margin performance and recent increases in profitability ratios;
Very low General Obligation debt exposure;
Strong state support with sufficient autonomy to meet our legislative mandate, and;
Strong management of the commission, including the recent adoption of a strategic plan.
Standard & Poor's rates 94 percent of the commission's single-family mortgage program bonds AAA based on the collateral of GNMA and FNMA mortgage-backed securities. The remaining 6 percent are rated AA-plus based on single family whole loan assets, over collaterization, and investments. All of MHDC multifamily mortgage programs bonds are rated either AA-plus or AAA based on FHA mortgage insurance and investments.
The 75th Missouri General Assembly established MHDC as the state's housing finance agency in 1969. Since that time, MHDC has encouraged and assisted in the production of affordable rental housing and provided homeownership opportunities for thousands of families. The Mission of MHDC remains to provide quality, safe, affordable housing for low and moderate-income citizens of Missouri. MHDC is Missouri's housing finance agency. MHDC administers several different programs aimed at providing safe, quality affordable housing to low and moderate income citizens of Missouri.
MHDC may issue tax-exempt or taxable bonds to provide below market interest rate construction and permanent financing for affordable multifamily rental housing. The reduced interest rate allows the developer to set rents at affordable rates for low and moderate-income families. Bond funds are generally leveraged with other federal, state, local, and private funds.
More information on MHDC is available at their website (http://www.mhdc.com/) or by writing MHDC at 3435 Broadway, Kansas City, Missouri 64111.
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