Standard & Poor’s raised its rating on the Vermont Housing Finance Agency’s multifamily mortgage bonds to A-plus from BBB-plus.
“The upgrade is based on recent legislative changes that resulted in these bonds conforming with our moral obligation criteria,” Standard & Poor’s credit analyst Henry Henderson wrote.
The A-plus rating and stable outlook reflect the moral obligation pledge of the state, which is rated AA-plus with a stable outlook. The bond resolution for the multifamily mortgage bonds establishes a debt service reserve funded at the maximum annual debt service.
All three major rating agencies assign a triple-A rating to Vermont’s general obligation bonds.