OREANDA-NEWS. Fitch Ratings affirms the short-term 'F1+' rating on the following obligations issued by the Alaska Housing Finance Corporation (AHFC or the corporation):

-- \$150 million commercial paper (CP) program (\$18.7 million CP notes currently outstanding);
-- \$130.8 million governmental purpose bonds;
-- \$80.9 million home mortgage revenue bonds;
-- \$45.7 million state capital project bonds.

SECURITY

The internal liquidity support is secured from the self-liquidity funds of AHFC.

KEY RATING DRIVERS

SUFFICIENT LIQUID INTERNAL RESOURCES: With Fitch stress scenarios included, internal funds/cash reserves are above 125% of outstanding short-term obligations.

HIGH LONG-TERM RATING: Sound financial ratios, a sizeable asset base, and strong management oversight provide support to AHFC's 'AA+' general obligation rating which is consistent with a short-term rating of 'F1+'.

MANAGEMENT EXPERTISE: Management has policies in place to ensure for a timely delivery of the cash amounts necessary to purchase variable rate demand obligations or CP if necessary.

RATING SENSITIVITY

DECREASE IN LIQUID ASSET BASE: A decrease in AHFC's liquid asset base could lower their respective coverage levels and put negative pressure on the short-term rating.

CREDIT PROFILE

The 'F1+' rating reflects AHFC's ability to cover short-term obligations by a minimum of 1.25x from internal, highly liquid resources. As of Jan. 2, 2015, the corporation's pool of highly liquid cash and marketable securities totaled a Fitch adjusted \$586.8 million. Based on this amount and assuming CP is drawn to its maximum authorized amount, the available resources would cover outstanding variable rate bonds and CP by 1.44x.

AHFC has specific policies in place in the event of a failed remarketing, mitigating concerns over potential non-delivery of needed funds. In addition to sufficient reserves, the corporation's housing finance bond portfolio is performing well, limiting the likelihood of a potential drain on program surpluses or unrestricted assets. Fitch currently has an 'AA+' rating on the corporation's general obligation pledge which reflects the corporation's sound financial ratios, sizeable asset base, and strong management oversight.