Strong financial performance contributed to a rating upgrade from Aa2 to Aa1 for Vermont Housing Finance Agency (VHFA)'s multiple purpose social bonds from Moody's Investor Service last week. Aa1 is the second highest possible rating from Moody’s. The rating applies to all outstanding long-term debt under the multiple purpose program and should help lower the cost of affordable housing financing through VHFA. Vermonter investors can purchase VHFA bonds during a sale scheduled for Tuesday of this week.
VHFA’s Executive Director Maura Collins praised the ratings change, remarking, “This announcement from Moody's reflects increasing confidence in the strength and stability of VHFA’s bond offerings, and our continued stewardship of the Agency’s finances. The upgraded rating expands the Agency’s capacity to give Vermonters access to safe and affordable homes.”
VHFA sells its bonds to investors to raise funds for its affordable homeownership mortgage programs and its loans to affordable rental housing developers. The upgraded rating will reduce the Agency’s cost to issue bonds. The savings from these reduced costs will be passed on to VHFA borrowers, allowing more resources to flow towards VHFA’s rental and homeownership programs.
The announcement from Moody’s cited several factors contributing to the ratings upgrade, including strengthened asset quality, a sound legal structure, stable cash flow projections and strong management oversight.
VHFA is scheduled to sell nearly $23 million in bonds tomorrow, July 12, 2022. Priority is expected to be given to orders placed by Vermont retail buyers. Investors interested in purchasing bonds can contact Raymond James at 877-295-9116, JP Morgan at 855-231-8873 or Morgan Stanley at 800-446-0193.
Pictured: Jenn and Frank Jareki, who purchased a home with a VHFA mortgage and down payment assistance. VHFA’s homeownership programs are funded through the Agency’s sale of multiple purpose bonds.