Fitch Assigns 'F1' ST Rating to Idaho HFA's $23MM Class II Hsg Bonds 2015 Series A-3

Fitch Ratings assigns an 'F1' short-term rating to the $22,520,000 Idaho Housing and Finance association single family mortgage class II bonds, 2015 series A-3.

KEY RATING DRIVERS:

The short-term 'F1' rating is based on the liquidity support provided by Barclays Bank PLC (rated 'A/F1', Stable Outlook) in the form of a Standby Bond Purchase Agreement (SBPA). For information on the long-term rating, see the press release dated June 30, 2015 entitled 'Fitch Assigns 'AA' LT Rating to Idaho HFA's $23MM Class II Hsg Bonds 2015 Series A-3; Outlook Stable.' available on Fitch's website at www.fitchratings.com.

The SBPA provides for the payment of the principal component of purchase price plus an amount equal to 186 days of interest calculated at a maximum rate of 12%, based on a year of 360 days for tendered bonds during the weekly, monthly, quarterly, and semiannual rate modes in the event that the proceeds of a remarketing of the bonds are insufficient to pay the purchase price following an optional or mandatory tender. The SBPA will expire on July 8, 2019, the stated expiration date, unless such date is extended, conversion to a mode other than weekly, monthly, quarterly, or semiannual rate; or upon the occurrence of certain other events of default which result in a mandatory tender or other termination events related to the credit of the bond obligor which result in an automatic and immediate termination. The short-term 'F1' rating will expire on the expiration or prior termination of the SBPA. The remarketing agent for the bonds is Barclays Capital Inc. The bonds are expected to be delivered on or about July 8, 2015.

The bonds will be issued in the weekly rate mode, but may be converted to a daily, monthly, quarterly, or semiannual rate. While bonds bear interest in the weekly rate mode, interest is paid on each January 1 and July 1, commencing Jan. 1, 2016. Holders of bonds bearing interest in the weekly rate mode may tender their bonds for purchase with the requisite prior notice. The trustee/tender agent is obligated to make timely draws on the SBPA to pay purchase price in the event of insufficient remarketing proceeds, and in connection with the expiration or termination of the SBPA, except in the case of the credit-related events permitting immediate termination or suspension of the SBPA.

Funds drawn under the SBPA are held uninvested, and are free from any lien prior to that of the bondholders. The bonds are subject to mandatory tender: (1) upon conversion of the interest rate; (2) upon expiration, or termination of the SBPA; and (3) following the receipt of written notice from the bank of an event of default under the SBPA, directing such mandatory tender. Optional and mandatory redemption provisions also apply to the bonds.

Bond proceeds will be used to pay and redeem all outstanding 1997 series A,C,E through G, 1998 series C through I, 1999 series A through H, and 2000 series A through E previously issued under the separate stand-alone indentures, to finance the purchase of certain existing mortgage loans, to fund the 2015 series A subaccount of the debt service reserve fund and to pay certain costs of issuance of the 2015 series A bonds.

RATING SENSITIVITIES

The short-term rating reflects the short-term rating that Fitch maintains on the bank providing liquidity support and will be adjusted upward or downward in conjunction with the short-term rating of the bank and, in some cases, the long-term rating of the bond obligor.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Rating Guidelines for Variable-Rate Demand Obligations and Commercial Paper Issued with External Liquidity Support (pub. 22 Jan 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=856189

U.S. Municipal Structured Finance Criteria (pub. 23 Feb 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=862222

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=987246

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=987246

Endorsement Policy

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

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Contacts:

Fitch Ratings
Primary Analyst
Joseph Staffa
Senior Director
+1-212-908-0829
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Richard Park
Director
+1-212-908-0289
or
Committee Chairperson
Mario Civico
Senior Director
+1-212-908-0796
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
Email: sandro.scenga@fitchratings.com

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