Standard & Poor's upgraded New York City Housing Development Corp. bonds under its multi-family housing bond resolution, better known as the open resolution, to AA-plus from AA.
The open resolution is HDC's largest single asset and most flexible financing vehicle, according to corporation officials. HDC established the open resolution in 1993 to permit the issuance of an unlimited amount of parity debt bonds.
S&P cited the corporation's strategy and management of the open resolution, the resolution's financial strength and operating performance, as well as high government support level.
This is the first HDC rating issued under S&P's revised rating criteria, which it announced in June.
HDC's open resolution is secured by more than 950 mortgage loans, including 850 permanent and 75 construction loans, say officials. The agency has more than $4.76 billion in bonds are outstanding and more than $4.97 billion in multifamily loans, reserves and other assets.
"We are gratified by S&P's recognition of the strength of HDC's innovative open resolution, our management ability and our capacity to cover potential loan losses," said corporation president Gary Rodney.
HDC, the nation's largest housing finance agency created to serve a single municipality, manages $13.1 billion of assets.
