Standard & Poor's Ratings Services raised its rating on VHFA's multifamily mortgage bonds from 'BBB+' back to ‘A+’.
"The upgrade is based on recent legislative changes that resulted in these bonds conforming with our moral obligation criteria," said Standard & Poor's credit analyst Henry Henderson.
Read the Standard and Poor’s press release.
Vermont's econonomy outperformed the U.S. during the past 12 months, with tax revenues that exceeded projections by 2.5%. Nevertheless, state economists cautioned the legislature and administration of the risks here in Vermont should national policy makers fail to reach an agreement about raising the U.S. debt ceiling.
Home prices in Vermont will likely continue to decline slightly during the next 3 months, the economic report to the legislature explained. After that, Vermont's real estate market is likely to begin "an extended period of very low price appreciation."
Research shows a new way of considering the impact of rising house prices: higher prices mean higher incomes for existing homeowners’ children as they age. Unfortunately, the increase in prices also reduces the earning levels of renter’s children in the future. “The results show that a 1 percentage point increase in house prices, when children are 17-years-old, results in roughly 0.8 percent higher annual income for the children of homeowners, and 1.2 percent lower annual income for the children of renters,” the report states.