| The credit quality of US state finance agencies is still at risk from low mortgage rates and home prices, high unemployment and uncertainty over federal policy, Moody's Investors Service said on Thursday. Despite signs of life in the housing market, the ratings agency is keeping its negative outlook for the entire state housing finance agency sector, it added. The agencies "weathered the recession well," Moody's said.
According to the credit rater, the agencies maintained a steady median asset-to-debt ratio of approximately 1.2 throughout the 2007-09 recession, and their median profitability has now stabilised between eight per cent and nine per cent over the last three years after dropping in 2007...............................................Full Article: Source
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