New Jersey Housing & Mortgage Finance Agency 1991-1 Bond Rating Affirmed At 'A+', Off CreditWatch; Outlook Stable


SAN FRANCISCO (S&P Global Ratings) March 12, 2019--S&P Global Ratings affirmed 
its 'A+' rating on New Jersey Housing & Mortgage Finance Agency's 
(Presidential Plaza at Newport project) series 1991-1 multifamily housing 
revenue refunding bonds, and removed the rating from CreditWatch with negative 
implications, where it had been placed on Dec. 12, 2018. The outlook is 
stable.

The CreditWatch placement had been based on our receipt of a report that the 
trustee draws on the debt service reserve account or the liquidity subaccounts 
to meet debt service payments.

"Following conversations with the trustee during the CreditWatch period, we 
have concluded that cash shortfall risks are mitigated by the project's 
seven-month debt service reserve fund, which includes an additional month of 
principal and interest reserve to take into account a 30-day lag," said S&P 
Global Ratings credit analyst Jose Cruz. "Furthermore, the project maintains a 
letter of credit with Bank of New York Mellon N.A. available to cover 
potential cash flow shortfalls."

The rating reflects our view of:

  • The sufficiency of mortgage revenues, reserves, and investment earnings to pay full and timely debt service on the bonds until maturity;
  • The very strong credit quality of the Federal Housing Administration-insured mortgage loan collateral;
  • The investments held pursuant to a guaranteed investment contract with JPMorgan Chase Bank N.A.;
  • The debt service reserve fund sized at seven months' debt service on the bonds, including one month of principal and interest on the mortgage note; and
  • A 101.15% asset-to-liability position as of Feb. 28, 2018.
The stable outlook reflects the outlook of JPMorgan Chase Bank N.A., which 
provides a guaranteed investment contract for the project. A significant 
decline in parity could indicate potential cash flow shortfalls, which could 
result in a negative rating action. Furthermore, a negative rating action on 
JPMorgan Chase Bank N.A. will also result in a corresponding negative rating 
action on the bonds. Conversely, a positive rating action on JPMorgan Chase 
Bank N.A. will also result in a positive rating action on the bonds.
We work across the world

From London to San Francisco, to our home base in (Saint Helier) Jersey, we’re looking for extraordinary and creative scientists to help us drive the field forward.

AC Investment Inc. currently does not act as an equities executing broker or route orders containing equities securities. If AC Invest’s business model were to change and it begins routing non-directed orders in NMS securities, it will comply with the disclosure requirement of Rule 606.

77 Massachusetts Avenue Cambridge, MA 02139 617-253-1000 pr@ademcetinkaya.com