The Idaho Housing Finance Association earned a AAA rating and stable outlook from Fitch Ratings on Monday ahead of plans to privately place a $202.6 million refunding on mortgage bonds this week.

Proceeds of the bonds will refund eight series of outstanding variable-rate demand obligations Series 2007D through 2007K from the November 2006 indenture.

The bonds are secured by all assets and revenues under the November 2006 trust indenture, investment earnings and reserve funds.

The class I bondholders have a first priority claim on all assets and revenues under the indenture, according to the Fitch report. The issuer’s single-family loan portfolios continue to perform better than national averages, the report said. The portfolio is serviced internally, which helped attribute to actual losses of only 1.5% in 2011.

The class I 2012 Series A bonds are being issued as London Interbank Offered Rate-based index bonds with no demand feature, according to the report.

The refunding takes away the continued cost uncertainty of liquidity replacement for more than half of the class I variable-rate bonds currently totaling $356.9 million. The new 2012 A bonds will continue with a swap contract hedge with Barclays.

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