For the third year in a row, the California Department of Veterans Affairs (CalVet) has secured a AA- rating from Fitch Ratings, a global rating agency.
The 'AA-' rating reflects the above-average amount of retained earnings in the program which are equal to 12.7 percent of bonds outstanding and 13.5 percent of loans outstanding in FY 2012, which increased from 11.6 percent and 11.8 percent, respectively, in FY 2011.
This is the third straight year of increases albeit due to decreasing bond and loan balances. CalVet is one of very few state agencies that can claim this high rating.
“I am very pleased that given the difficult economic times our nation is experiencing, CalVet has been able to hold on to its AA- rating from Fitch Ratings,” said Peter J. Gravett, CalVet Secretary. “The downturn in the housing market has greatly affected the CalVet Farm and Home Loan program, but thanks to the diligence of its staff, the program continues to be viable and secure.”
Although Fitch Ratings continues to project a negative outlook for the program, CalVet is confident that its Farm and Home Loan program will perform much better over the next few months given that the economy is showing signs of improving.
As the housing market continues to rebound, CalVet is poised to provide qualified veterans with a much better option for purchasing a farm or home in California than in the private sector.