Moody’s Investors Service on Tuesday removed $460 million of mortgage revenue bonds issued in 15 separate series by the Mississippi Home Corp. from watch for possible downgrade.
Moody’s also affirmed its Aaa long-term rating on the bonds and said the outlook is stable.
The action follows the MHC’s termination of guaranteed investment contracts with Pallas Capital Corp. and Depfa Bank PLC, which Moody’s recently downgraded to Baa3/P-3.
“Moody’s has confirmed that all of the funds invested in Pallas and Depfa are invested in other permitted investments under the indenture,” the agency said.
Moody’s said it evaluated cash-flow scenarios assuming the reinvestment of funds by the agency at interest rates consistent with its criteria for transactions that are not supported by GICs.
“These cash-flow analyses demonstrated debt-service and parity-ratio sufficiency under all scenarios,” Moody’s said.
