OREANDA-NEWS. Fitch Ratings has assigned a 'AAA' rating to the Indiana Housing and Community Development Authority's (the authority) single family mortgage revenue bonds, $30 million 2016 series A-1 and $49.51 million 2016 series A-2.

Fitch has also affirmed the following outstanding 1980 master indenture Single Family Mortgage Bond Program debt at 'AAA':

--$19.2 million single family mortgage bonds, 2006B-1, B-2& B-3;

--$18.5 million single family mortgage bonds, 2006C-1;

--$22.7 million single family mortgage bonds, 2006D-1 & D-2;

--$18.4 million single family mortgage bonds, 2007A-1 & A-2;

--$8.4 million single family mortgage bonds, 2008A-2 & A-3;

--$45.8 million single family mortgage bonds, 2010 08A-2.

The Rating Outlook is Stable.

SECURITY

The bonds are special obligations of the authority secured solely by the revenues and assets pledged under the amended and restated master indenture that primarily consist of mortgage backed securities (MBS) guaranteed by the Government National Mortgage Association (GNMA or Ginnie Mae), mortgage pass-through certificates guaranteed by the Federal National Mortgage Association (FNMA or Fannie Mae) and MBS guaranteed by the Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac) and cash reserves.

KEY RATING DRIVERS

LOAN PORTFOLIO: The loan portfolio consists of MBS guaranteed by Ginnie Mae and Freddie Mac and the Fannie Mae mortgage pass through certificates (MBS).

ASSET QUALITY: Ginnie Mae, Freddie Mac and Fannie Mae guarantee the full and timely payment of principal and interest on the respective MBS regardless of actual performance of the underlying loans.

ASSET TO DEBT RATIO: The program asset-to-debt ratio is 212.5% as of April 1, 2016.

PROGRAM OVERSIGHT: Indenture allows surplus funds in excess of 103% to be withdrawn from the indenture. However, the history of the authority and its single family mortgage program strongly suggests that management is unlikely to withdraw the indenture's surplus funds.

RATING SENSITIVITIES

U. S. SOVERIGN LINK: As the ratings of Fannie Mae, Ginnie Mae and Freddie Mac, as government sponsored entities (GSEs) are currently linked to the U. S. sovereign rating, any rating action on the U. S. Sovereign rating may directly impact the rating on the bonds.

CHANGE IN FNMA or FHLMC LINKAGE: Should Fitch's view of the U. S. government's direct level of financial support for Fannie Mae or Freddie Mac change, the rating of the two GSEs may be delinked from the U. S. sovereign rating and may result in negative pressure on the bonds.

BANKRUPTCY REMOTE: Fitch considers the authority to be bankruptcy remote based on its public purposes, predominantly limited recourse debt and its inability under current law to commence a voluntary proceeding under Chapter 9 without legislative or executive approval. A change in this status could lead to a rating change and limit the rating on the single family program to that of the authority's general obligation debt.