(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
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.