Key Takeaways
- State HFA issuer credit ratings remained strong and stable from 2019 through the first 10 months of 2020
- Of the 23 state HFAs we rate, 21 are rated ‘AA-‘ or higher
- Ratios in 2019 show mixed performance, but mostly positive trends with equity and assets at decade-long highs
- We expect 2020 financial ratios to deteriorate somewhat due to the COVID-19 pandemic, with higher delinquencies overall and stressed liquidity for some
- HFA management teams have prioritized equity preservation and built intrinsic liquidity for when they need it most; that time may be now.
27 Oct, 2020