Fitch to Downgrade S-T Ratings to 'F1' on Utah Hsg Corp S-F Mtge Class I VRBs (2000 Indenture)

NEW YORK--()--On the effective date of May 7, 2014, Fitch Ratings will downgrade the short-term ratings to 'F1' from 'F1+' assigned to the following $54,245,000 Utah Housing Corporation (UHC) single family mortgage class I variable rate bonds (the bonds) under the 2000 General Trust Indenture, consisting of:

--$6,560,000 2000 Series C;

--$4,085,000 2002 Series E;

--$5,950,000 2002 Series F;

--$8,095,000 2002 Series G;

--$5,385,000 2003 Series A;

--$5,905,000 2003 Series B;

--$5,725,000 2003 Series C;

--$8,005,000 2003 Series E;

--$4,535,000 2003 Series F.

The short-term rating action is in connection with the substitution of the liquidity support provided by Fannie Mae and the Federal Home Loan Mortgage Corporation (each rated 'AAA/F1+', Stable Outlook) in the form of a Temporary Credit and Liquidity Facility (TCLF), with a substitute liquidity facility in the form of a Standby Bond Purchase Agreement (SBPA) to be issued by JPMorgan Chase Bank, National Association (JPMorgan, rated 'A+/F1', Stable Outlook), effective May 7, 2014.

KEY RATING DRIVERS:

On the effective date, the short-term 'F1' ratings will be based on the substitute SBPA provided by JPMorgan. The long-term 'AAA' ratings assigned to the bonds continue to be based on the ratings assigned to Utah Housing Corporation's class I variable rate bonds under the 2000 General Trust Indenture (rated 'AAA'). The Rating Outlook is Stable for the long-term rating.

The substitute SBPA provides for the payment of the total principal component of purchase price for all series plus an amount equal to 186 days of interest for each series calculated at a maximum rate of 12%, based on a year of 365 days. The principal and interest amount is available for tendered bonds during the daily and weekly rate mode in the event that the proceeds of a remarketing of the bonds are insufficient to pay the purchase price following an optional or mandatory tender. The substitute SBPA will expire on May 5, 2017, the stated expiration date, unless such date is extended; upon conversion of all series of bonds to an interest rate mode other than the daily or weekly rate mode; or upon the occurrence of certain other events of default which result in a mandatory tender or other termination events related to the credit of UHC's Class I Variable Rate Bonds under the 2000 General Trust Indenture which result in an automatic and immediate termination. The short-term 'F1' ratings will expire on the expiration or prior termination of the SBPA. The remarketing agent for the bonds is Barclays Capital Inc.

For more information on the long-term rating, see the press release dated April 29, 2013 'Fitch Rates Utah Housing Corp's Single Family Class I Refunding Bonds 2013 Series A (Taxable) May 2000 Indenture' available on Fitch's website at www.fitchratings.com.

RATING SENSITIVITIES:

The short-term rating reflects the short-term rating that Fitch maintains on the bank providing liquidity support, and will be adjusted upward or downward in conjunction with the short-term rating of the bank and, in some cases, the long-term rating of UHC's class I variable rate bonds under the 2000 General Trust Indenture. The long-term rating is exclusively tied to the creditworthiness of UHC's class I variable rate bonds under the 2000 General Trust Indenture and will reflect all changes to that rating.

Additional information is available at www.fitchratings.com.

Applicable Criteria and Related Research:

--'U.S. Municipal Structured Finance Criteria', Feb. 24, 2014;

--'Rating Guidelines for Variable-Rate Demand Obligations and Commercial Paper Issued with External Liquidity Support', Jan. 27, 2014.

Applicable Criteria and Related Research:

U.S. Municipal Structured Finance Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=736618

Rating Guidelines for Variable-Rate Demand Obligations and Commercial Paper Issued with External Liquidity Support

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=730736

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Contacts

Fitch Ratings
Primary Analyst
Kasia Reed, +1 212-908-0500
Analytical Consultant
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Trudy Zibit, +1 212-908-0689
Managing Director
or
Committee Chairperson
Linda Friedman, +1 212-908-0727
Senior Director
or
Media Relations:
Elizabeth Fogerty, +1 212-908-0526
elizabeth.fogerty@fitchratings.com

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Contacts

Fitch Ratings
Primary Analyst
Kasia Reed, +1 212-908-0500
Analytical Consultant
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Trudy Zibit, +1 212-908-0689
Managing Director
or
Committee Chairperson
Linda Friedman, +1 212-908-0727
Senior Director
or
Media Relations:
Elizabeth Fogerty, +1 212-908-0526
elizabeth.fogerty@fitchratings.com