Standard and Poor’s reaffirms AA+ issuer credit rating

Standard & Poor’s reaffirmed the AA+ issuer credit rating on Missouri Housing Development Commission in a report released by the agency in January.

The report credits MHDC’s high credit quality and low-risk asset base as one of the keys to the rating.  It also specifically mentions the Commission’s strong and stable financial performance, high debt rating (around 78 percent rated ‘AAA’) and minimal general obligation debt exposure (about 1 percent of total debt).  Standard & Poor’s analysts also point out that MHDC “has a strong and experienced management team that has repeatedly proven to be proactive and successful in meeting its’ mission of financing affordable housing for residents of the state of Missouri.”

MHDC is only one of three housing finance agencies to achieve a ‘AA+’ rating, joining Virginia and Minnesota.  West Virginia’s housing finance agency has a ‘AAA’ rating.

As a housing finance agency with Standard and Poor’s top-tier designation since 1987, MHDC “consistently demonstrates superior performance in all areas considered for this distinction.” Areas considered include:

§   A long and successful track record of providing affordable housing for the state; 

§   Unrestricted fund balances of at least 4 percent of debt, including liquid assets of at least 2 percent of mortgages;

§   Strong administrative capabilities;

§   A prudent investment policy; and

§   Strong internal controls and financial management to monitor mortgage loan and investment performance.

Standard & Poor’s analysts noted the Commission’s aggressiveness in seeking ways to increase new housing stock in the state and to preserve, through rehabilitation, older housing communities.  They mentioned that being able to meet this mandate has been due, in part, to the support provided by the state administration.

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NOTE TO EDITORS:  Media representative questions can be directed to Brandon Laster, Public Information Officer, at 816.759.6692 or e-mail blaster@mhdc.com.  If you would like to receive this release by e-mail in rich-text format, please email blaster@mhdc.com and provide us with the appropriate e-mail address.   A copy of the ICR Review is available in Adobe Acrobat format on the MHDC Web site, http://www.mhdc.com. 

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MHDC is the state's housing finance agency. The Commission is dedicated to strengthening communities and the lives of Missourians through the financing, development and preservation of affordable housing. Since 1969, MHDC has encouraged and assisted in the production of affordable rental housing and provided homeownership opportunities for thousands of families while investing almost $4 billion in Missouri housing for rental housing developments, home mortgages, home improvement loans, loans to landlords for renovations, grants to neighborhood housing groups and other programs.  MHDC does not build or renovate housing itself; rather, it functions as a bank, providing financing directly to borrowers or through a network of private lending institutions. Most of MHDC's programs operate as a public-private partnership.