Fitch Confirms 'AAA/F1+' Ratings on Indiana Housing's 2008 Series A-2 Bonds

--1998 series A, D;

--2000 series A, C, D;

--2001 series A-C;

--2002 series A-D;

--2003 series A-D;

--2004 series A-C;

--2005 series A-C;

--2006 series A;

--2006 series B;

--2006 series C;

--2006 series D;

--2007 series A;

--2008 series A.

The confirmation of the long-term 'AAA' rating is in connection with the extension of the delivery period for the program's mortgage backed securities (MBS) to Dec. 1, 2010. Consolidated cash flows reflecting the extended delivery period were provided to Fitch and demonstrate full and timely bond payments under various prepayment scenarios. Bond proceeds will continue to be held in investments permitted under the program legal documents until MBS origination or the end of the delivery period.

The long-term 'AAA' rating on the bonds reflects the current and projected composition of the single-family mortgage portfolio. As of July 1, 2009, more than 99% of the mortgage portfolio consisted of GNMA (72%), FNMA (15%) and FHLMC PC (12%) mortgage-backed certificates, which are fully guaranteed for timely payment regardless of the actual performance of underlying loans. GNMA mortgage-backed securities are guaranteed by the U.S. government; Fitch rates FNMA and FHLMC PC mortgage-backed securities 'AAA'. The small amount of whole loan mortgages that are not guaranteed by certificates are generally covered by primary mortgage insurance and pool insurance policies. The rating is also supported by the high level of overcollateralization that exists within the indenture and the program's financial performance as evidenced by an asset parity ratio of 112% as of the Dec. 31, 2008 audited financial statements.

The confirmation of the short-term 'F1+' rating is in connection with the extension of the standby bond purchase agreement (SBPA) issued by Royal Bank of Canada (RBC) (rated 'AA/F1+' by Fitch), acting through its New York branch. The SPBA was originally due to expire on Dec. 1, 2009 and is being extended with a new expiration date of Dec. 1, 2010. The short-term 'F1+' rating on these bonds is based on the liquidity support provided by the SBPA which provides for payment of the purchase price of tendered bonds and is sized to cover the principal portion of the purchase price and 184 days of interest at a rate of 12% based on a 365-day year for the series 2008 A-2 bonds. The short-term rating on the bonds will expire on Dec. 1, 2010 which is the new stated date of the expiration of the SBPA, unless such date is extended, or upon any earlier expiration or termination of the SBPA. The authority may exercise a one-time option to replace the RBC SBPA without an early termination fee only if the authority enters into an alternate liquidity facility provided by either Fannie Mae or by Freddie Mac pursuant to the Temporary Credit and Liquidity Program (TCLP) announced by the U.S. Treasury Department on Oct. 19, 2009.

To date, approximately 14.5% of the bonds under the single-family revenue bond program have been issued in a variable-rate mode with nearly all of those bonds swapped to a synthetic fixed rate with the following counterparties: Goldman Sachs Mitsui Marine, L.P. (GSMM) (guarantee by Goldman Sachs Group, Inc.; rated 'A+/F1+' by Fitch), UBS AG (rated 'A+/F1+') and Royal Bank of Canada (RBC; rated 'AA/F1+').

Additional information is available at 'www.fitchratings.com'.

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Fitch Ratings, New York
Maura McGuigan, 212-908-0591
Charles Giordano, 212-909-0607
or
Media Relations:
Cindy Stoller, 212-908-0526
Email: cindy.stoller@fitchratings.com