Fitch: U.S. State Housing Finance Agencies Remain Resilient

NEW YORK--()--Amid ongoing challenges, financial metrics are still improving for U.S. state housing finance agencies (SHFAs), according to Fitch Ratings in a new report.

Throughout fiscal (FY) 2014, low conventional mortgage rates continued to suppress SHFAs' ability to originate new whole loan mortgages through SHFA-issued debt. FY 2014 results showed that aggregate assets fell by 4.5% and aggregate debt decreased by 6.9%. 'Declines in balance sheet numbers are expected to continue in the short term; however, some SHFAs are beginning a return to mortgage revenue bond issuance and this slow movement back may take time to appear on audited financial statement balance sheets,' said Senior Director Maura McGuigan.

FY 2014's results revealed that SHFAs remain financially sound. Fitch's report shows that equity continues to increase while leverage ratios are falling. In addition, net operating revenue for SHFAs rose for the fourth straight year. 'Rising net operating revenue for state housing finance agencies is likely attributed to rising profitability within housing bond programs and the up-front revenues generated from alternative financing methods in recent fiscal years,' said McGuigan.

Fitch also released its Fitch Analytical Comparative Tool (FACT) for the SHFA sector, featuring a broad overview of the industry, highlighting time-series trends across key profitability, capital-related, and financial metrics.

'State Housing Finance Agencies - Peer Study (September 2015)' and 'State Housing Finance Agencies - F.A.C.T. (September 2015)' are available at 'www.fitchratings.com' or by clicking on the below links.

Additional information is available on www.fitchratings.com

State Housing Finance Agencies - Peer Study

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867905

Related Research

State Housing Finance Agencies - F.A.C.T.

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867910

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
Ryan Pami
Associate Director
+1-212-908-0803
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY, 10004
or
Maura McGuigan
Senior Director
+1-212-908-0591
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
Email: sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Ryan Pami
Associate Director
+1-212-908-0803
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY, 10004
or
Maura McGuigan
Senior Director
+1-212-908-0591
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
Email: sandro.scenga@fitchratings.com