(The following was released by the rating agency)
April 27, 2011--Standard & Poor's Ratings
Services revised its outlook to negative from stable on certain public finance housing authority issuer credit ratings, reflecting the outlook revision to negative from stable on the United States of America (AAA/Negative/A-1+; please see "United States of America 'AAA/A-1+' Rating Affirmed; Outlook Revised To Negative," published April 18, 2011, on RatingsDirect on the Global Credit Portal for further details).
Per our government-related entity (GRE) criteria, the GRE ratings noted in this release are constrained by the long-term sovereign rating on the U.S. We derive our opinion of the support included in the ratings based on the links and roles attached to the supporting entity, the U.S. government (see "General Criteria: Enhanced Methodology And Assumptions For Rating Government-Related Entities," published June 29, 2009). We also factor direct and indirect risks, such as annual appropriation risks for public housing subsidy, essentiality of service provided, and governmental programmatic support, into our standalone credit profile ratings.
The affected ratings benefit from a one-notch upgrade on the standalone credit profile based a moderate likelihood of support from the U.S. government to the public housing authorities in the event of an extraordinary circumstance. The moderate likelihood of support is based on the strong role and limited importance of these housing authorities to the U.S. government. Therefore, a lower U.S. sovereign rating would likely cause us to lower these ratings as well our issuer credit ratings on these GREs.
For a list of affected ratings please go to here. Click "'AAA' Municipal Housing-Related Issues Assigned Negative Outlook(XLS)" and select the tab PHA.
RELATED CRITERIA AND RESEARCH
General Criteria: Enhanced Methodology And Assumptions For Rating Government-Related Entities, June 29, 2009
Complete ratings information is available to subscribers of RatingsDirect on the Global Credit Portal at www.globalcreditportal.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com. Use the Ratings search box located in the left column.