S & P reaffirms housing commission’s credit rating

The report cites MHDC’s high credit quality and low-risk asset base as factors in the rating and also notes the commission’s strong and stable financial performance, high debt rating and minimum general obligation debt exposure.

Analysts also note that MHDC “has a strong and experienced management team that has repeatedly proven to be proactive and successful in meeting its mission of financing affordable housing for residents of the state of Missouri,” the report states.

As a housing finance agency with Standard & Poor’s top-tier designation since 1987, MHDC “consistently demonstrates superior performance in all areas considered for this distinction,” the report said.

Areas considered for the rating include:

• A long and successful track record of providing affordable housing for the state;

• Unrestricted fund balances of at least 4 percent of debt, including liquid assets of at least 2 percent of mortgages;

• Strong administrative capabilities;

• A prudent investment policy; and

• Strong internal controls and financial management to monitor mortgage loan and investment performance.

Standard & Poor’s analysts noted the commission’s aggressiveness in seeking ways to increase new housing stock in the state and to preserve, through rehabilitation, older housing communities. They mentioned that being able to meet the mandate has been due in part to the support provided by the state administration.