Fitch Affirms Idaho Housing & Finance Association CP at 'F1'

Fitch Ratings affirms the Idaho Housing and Finance Association's $25 million commercial paper (CP) program at 'F1'.

SECURITY

Internal liquidity support is secured from the general obligation funds of the Idaho Housing & Finance Association (IHFA).

KEY RATING DRIVERS

SUFFICIENT INTERNAL RESOURCES: Liquid internal funds are 122% of the maximum amount of CP that may be secured by the internal resources of the IHFA after application of Fitch's stress scenarios.

LONG TERM RATING: Management oversight and moderate financial position support the IHFA's 'A+' general obligation rating.

MANAGEMENT EXPERIENCE: IHFA's management team has demonstrated financial flexibility and has effectively managed the CP program and the liquid asset base that supports it.

RATING SENSITIVITIES

DECREASE IN COVERAGE: Any material decreases in IHFA's liquid asset base or additional increases to their CP program above $25 million without adding sufficient resources could put negative pressure on the short-term rating.

CREDIT PROFILE

The 'F1' rating reflects IHFA's ability to cover the short-term obligations from internal highly liquid resources. As of March 31, 2016 the association's pool of highly liquid cash equivalents and marketable securities totaled a Fitch-adjusted $30.6 million. Based on that amount and assuming the CP is issued in the maximum authorized amount that can be secured by its internal resources, the available internal resources would cover IHFA's obligations by 122%. On April 22, 2016 an IHFA board resolution reduced the maximum amount of internally supported CP to $25 million from $50 million.

The CP is primarily used to warehouse mortgage loans. Those mortgage loans are then sold to government sponsored enterprises (FNMA, GNMA and FHLMC) and converted to cash within a rolling 30- to 90-day period.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria

Rating U.S. Public Finance Short-Term Debt (pub. 17 Nov 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=873508

Revenue-Supported Rating Criteria (pub. 16 Jun 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=750012

State Housing Finance Agencies General Obligation Rating Criteria (pub. 24 Feb 2016)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=877633

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1003762

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1003762

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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