CalHFA Comments on S&P Rating Upgrade
January 21, 2016
SACRAMENTO, CA - The California Housing Finance Agency is pleased to announce that Standard & Poor's has raised CalHFA's Issuer Credit Rating from 'A-' to 'A,' with a Positive Outlook.
"The rating is based on a significant recovery in CalHFA's profitability and equity levels, as well as the mitigation of many of the risks that the agency was plagued with four to six years ago," said Standard & Poor's credit analyst Aulii Limtiaco. "The positive outlook indicates an upward trend in ratios, profitability, asset quality, and equity levels, which are more in line with those of HFAs rated in the 'AA-' category."
The rating reflects CalHFA's two consecutive years of net operating profits after six years of losses, improved profitability and strengthened equity ratios, strong asset quality and leverage ratios, seasoned and proactive financial management, and other factors including noticeable improvement in CalHFA's delinquency and foreclosure rates in its loan portfolio. The letter from S&P also mentions the elimination of CalHFA's reliance on the federal Temporary Credit and Liquidity Program.
"We are very pleased that S&P has recognized the work we've done over the past several years to be on a sound financial footing," said Tia Boatman Patterson, CalHFA's Executive Director. "We look forward to using this acknowledgment of increased financial stability to help even more Californians find a place to call home."
The California Housing Finance Agency was created in 1975 with the goal of helping more Californians find a place to call home. CalHFA is a self-supported state agency that doesn't rely on taxpayer dollars. For more information on CalHFA programs, and how we are creating progressive financing solutions for affordable housing in California, visit www.calhfa.ca.gov or call toll free 877.9.CalHFA (877.922.5432).
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Contact: Eric Johnson
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