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Wyoming CDA Hsg. Rev. Bds(1994 Indenture), WY -- Moody's Assigns Aa1/VMIG 1 to Wyoming CDA Housing Revenue Bond, 2021 Series 2

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Rating Action: Moody's Assigns Aa1/VMIG 1 to Wyoming CDA Housing Revenue Bond, 2021 Series 2Global Credit Research - 31 Mar 2021New York, March 31, 2021 -- Moody's Investors Service has assigned a Aa1/VMIG 1 rating to approximately $33.5 million of Wyoming Community Development Authority (WCDA) Housing Revenue Bonds, 2021 Series 2 (Variable Rate) (Non-AMT). We have also maintained outstanding Aa1 and VMIG 1 ratings in the Housing Revenue Bonds program (1994 Indenture). The outlook is stable.RATINGS RATIONALEThe Aa1 rating reflects the strong financial position of the program, a sound loan portfolio composition, and the structure of the bonds previously issued under the 1994 Indenture.The VMIG 1 rating is based on the Aa1 long-term rating on the parity bonds under the 1994 Indenture as well as the Aa2(cr)/P-1(cr) counterparty risk assessments of the liquidity provider (Royal Bank of Canada (the "Bank")) and the Bank's obligation under the related standby bond purchase agreement (SBPA) to purchase the VRDOs upon optional or mandatory tender in the event of a failed remarketing or certain other events.RATING OUTLOOKThe stable outlook is based on 1994 Indenture's strong financial position.FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGSFor the Aa1 rating:- Significant and sustained PADR and margin growthFor the VMIG 1 rating:- N/AFACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGSFor the Aa1 rating:- Substantial erosion of asset-to-debt ratio or material deterioration of program financial performance to a level inconsistent with peer-rated programs- Severe and persistent economic weakening causing significant loan losses not substantially covered by mortgage insuranceFor the VMIG 1 ratings:- Downgrade of the short-term counterparty risk assessment of the SBPA provider- Substantial multi-notch downgrade of the long-term rating of 1994 IndentureLEGAL SECURITYThe Bonds are special obligations of WCDA, and will be on parity other bonds outstanding under the Indenture. The Housing Revenue Bonds are payable solely from the revenues andassets pledged under the Indenture which consist primarily of interest in first lien mortgages, investments and reserves. The Indenture requires WCDA to file a cash flow certificate inconnection with withdrawals and other significant actions.USE OF PROCEEDSThe 2021 Series 2 bond proceeds will be used to refund Housing Revenue Bonds issued in 2018.PROFILEThe 1994 Indenture was established to provide financing of affordable single-family mortgages to mid-to-low income families in Wyoming. Bond payments are secured by a pledge of revenues, loans and funds on deposit as established under the indenture, including a Mortgage Reserve Fund in an amount at least equal to 2% of outstanding mortgages and a Bond Reserve Fund in an amount at least equal to 3% of outstanding bonds. Additionally, the program established a Special Reserve Fund, a portion of which is restricted for debt service payment and loan losses. The unrestricted portion of the Special Reserve Fund may be released and transferred upon notification of rating agencies and the filing of a projection evidencing cash flow sufficiency.METHODOLOGY The principal methodology used in the long-term rating was US Housing Finance Agency Single-Family Housing Methodology published in October 2019 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1154478. The principal methodology used in the short-term rating was Variable Rate Instruments Supported by Conditional Liquidity Facilities published in March 2017 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1057134. Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of these methodologies. REGULATORY DISCLOSURESFor further specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. Moody's Rating Symbols and Definitions can be found at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004.For ratings issued on a program, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series, category/class of debt, security or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.Moody's general principles for assessing environmental, social and governance (ESG) risks in our credit analysis can be found at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1243406.Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating. Jeffrey Kaufmann Lead Analyst Housing Moody's Investors Service, Inc. 7 World Trade Center 250 Greenwich Street New York 10007 US JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Ferdinand Perrault Additional Contact Housing JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Releasing Office: Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 © 2021 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.CREDIT RATINGS ISSUED BY MOODY'S CREDIT RATINGS AFFILIATES ARE THEIR CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY’S (COLLECTIVELY, “PUBLICATIONS”) MAY INCLUDE SUCH CURRENT OPINIONS. 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