Moody's Assigns Aa2/VMIG 1 Rating to Wisconsin Housing and Economic Development Authority's Home Ownership Revenue Bonds

Strategic Insights -

Wisconsin Housing and Economic Development Authority (WHEDA) has secured an Aa2 rating with a stable outlook for its Home Ownership Revenue Bonds, 2025 Series C (Variable Rate Demand) (Non-AMT) (Social Bonds). The rating reflects WHEDA's sound financial position, favorable portfolio performance, and relatively low delinquencies on mortgage loans. The bonds have a total debt outstanding of $978.745 million as of March 31, 2025.

Key Takeaways:

  • WHEDA's Aa2 rating is based on its sound financial position with a program asset to debt ratio (PADR) of 1.76x.
  • The Authority's favorable portfolio performance and relatively low delinquencies on mortgage loans contribute to the rating.
  • The stable outlook on the long-term rating is based on solid loan performance and the likelihood that WHEDA's net operating margins will continue to grow.
  • The VMIG 1 short-term rating is based on the long-term rating on the parity bonds under the program and the short-term rating of the Federal Home Loan Bank of Chicago (FHLB).
  • Factors that could lead to a downgrade of the ratings include severe housing market or economic downturns and factors that severely erode or adversely affect the financial strength of WHEDA.
  • The Authority is authorized to make or purchase loans or mortgages to finance the purchase, construction, improvement, or rehabilitation of owner-occupied single-family residences in the state.

Statistics:

  • $50 million: The principal amount of the bonds.
  • $978.745 million: The total debt outstanding for the program as of March 31, 2025.
  • 1.76x: The program asset to debt ratio (PADR) as of the last review date.
  • 47.06%: The program's net operating margins.

Sources:

  • Moody's Investors Service. (2025). Moody's Assigns Aa2/VMIG 1 Rating to Wisconsin Housing and Economic Development Authority's Home Ownership Revenue Bonds, 2025 Series C (Variable Rate Demand) (Non-AMT) (Social Bonds).