The Alaska Housing Finance Corporation had its Aa1 ratings affirmed by Moody's Ratings ahead of plans to issue $105 million in state capital project bonds.
Moody's also maintained an Aa1 rating on all outstanding SCP II parity debt and affirmed the issuer's stable outlook.
A date for the bond sale hasn't been published.
"The Aa1 rating is based on AHFC's issuer rating (Aa1 stable), which reflects AHFC's strong balance sheet, abundant liquidity and robust operating performance, which will remain," Moody's analysts said in the May 12 report.
The SCP II Indenture was established in October 2012 to provide financing for general purposes. It permits issuance of additional bonds, provided such issuance does not result in any adverse effect on the outstanding ratings, Moody's said.
The rating agency also cited AHFC's limited exposure to the U.S. government (Aa1 stable) within its loan portfolio.
AHFC's asset-to-debt ratio was 1.59 times before capital charges, with a combined fund balance of about $1.59 billion, or 56% of bonds outstanding as of June 2025, Moody's said.
"After capital charges, the risk-adjusted 2025 combined fund balance was about $1.10 billion or 39% of the bonds outstanding, representing one of the stronger balance sheet positions among state housing finance agencies," analysts said. "The financial strength is further enhanced by the oversight of a capable and experienced management team."
Despite these high-quality attributes, Moody's said AHFC's financial growth is restricted by annual
The stable outlook mirrors the stable outlook on AHFC's issuer rating and reflects AHFC's strong liquidity position, robust financial position and operating results, evidenced by a strong five-year average margin of 27% and ample balance sheet resources (five-year average risk-adjusted net assets at 38% of outstanding bonds), which will all continue in the near-to-medium term, Moody's said.
Continued maintenance of ample balance sheet resources, strong operating performance and robust liquidity position of AHFC or substantially reduced risks in AHFC's bond and mortgage loan portfolio could position it for an upgrade, Moody's said.
If AHFC's five-year risk-adjusted average fund balance eroded to below 15% of bonds and margins fell below 10%, causing significant increased risks in AHFC's bond and mortgage portfolio or higher mandated levels of dividend transfer to the state from AHFC, it could be at risk of a downgrade, Moody's said.
The 2026 bonds are general obligations of AHFC and will be on parity with other outstanding bonds under the indenture.
Bonds issued pursuant to the SCP II Indenture are not secured by a pledge of any assets, mortgage loans, funds or accounts, other than the accounts established under the indenture. Alaska doesn't provide any support for the payment of the bonds. AHFC's general obligation is the sole support for SCP II bonds.
Although SCP II bonds do not specifically support single-family lending activity and are not secured by a pledge of mortgage loans, single-family mortgage lending is AHFC's primary business activity by volume, and the strong performance of the single-family mortgage portfolio is a significant contributor to AHFC's financial performance, the rating agency said. As of March 31, there were approximately $1.31 billion of bonds outstanding, Moody's said.
