OREANDA-NEWS. S&P Global Ratings assigned its 'AA+' long-term rating to Tennessee Housing Development Agency's (THDA) residential finance program bonds, issues 2016-2A and 2016-2B, issued under THDA's 2013 General Residential Finance Program Bond Resolution (the 2013 general resolution). Also, S&P Global Ratings affirmed its 'AA+' rating on the other outstanding bonds issued under the 2013 general resolution, all of which are on parity with each other as well as with the issue 2016-2 bonds. The outlook is stable.

"The rating reflects our view of the very strong resolution cash flows, a single-family whole-loan portfolio of very strong credit quality, sufficient liquid reserves, very high-quality investments, and legal provisions and program management consistent with the rating on the bonds," said S&P Global Ratings credit analyst Jose Cruz.

This is the eighth issue under THDA's 2013 general resolution, which was adopted Jan. 29, 2013. We understand that, at closing, approximately $26.8 million of the issue's underlying mortgage loans will be transferred into the 2013 general resolution from refunded bond series issued under the agency's 1985 general resolution and $24.6 million of the 2016-2 issuance will be used to redeem prior bonds, leaving approximately $100.4 million available for the purchase of additional whole loans. The supplemental resolution governing issue 2016-2 provides for mandatory redemption from unexpended proceeds on Jan. 1, 2017, to the extent that the additional loans have not been purchased.