Missouri Housing Development Commission Single-Family Mortgage Revenue Bonds Assigned 'AA+' Rating; Outlook Is Stable
- S&P Global Ratings assigned its 'AA+' long-term rating to the Missouri Housing Development Commission's (MHDC) anticipated $250 million 2025 series C single-family mortgage revenue bonds (non-AMT), issued under the First Place Homeownership Loan Program (FPHLP).
- In addition, we affirmed our 'AA+' long-term rating on MHDC's outstanding debt issued under the FPHLP.
- The outlook is stable.
CHICAGO (S&P Global Ratings) March 13, 2025--S&P Global Ratings today took the rating actions listed above.
We analyzed the FPHLP's environmental, social, and governance factors relative to the legal framework, program management and operational risk, credit quality of the asset pool, cash-flow analysis, liquidity, and market position and consider them neutral in our credit analysis. In our opinion, the program exhibits social opportunities related to social capital. MHDC and its programs, including the FPHLP, exist to increase affordable housing opportunities for qualified people in Missouri, which we consider in our market position assessment.
The stable outlook reflects our view that overcollateralization, as measured by the minimum A/L parity ratio, for the program will remain sufficient to cover credit losses and cash flow stress scenarios in line with the rating on the program. The outlook also reflects the stable outlook on GNMA, Fannie Mae, and Freddie Mac, which guarantee payment on the underlying program MBS loans.
While unlikely, we could take a negative rating action should consolidated resolution cash flows underperform so that the resolution's overcollateralization no longer meets the 'aa+' requirement. We could also lower the rating if our assessment of the program's management and operational risks weakens.
Alternately, we would consider a positive rating action if consolidated cash flows reflect stressed reinvestment rates in line with the 'AAA' rating requirement while meeting overcollateralization thresholds and requirements at the 'aaa' rating level, including all other requirements being rated above the sovereign, and all other program rating factors remaining either the same or improving.
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