Moody's Investors Service said it has downgraded to Ba2 from Ba1 Yonkers Industrial Development Agency, N.Y.'s multi-family housing revenue bonds (Herriot Street Housing, L.P. Project) Series 2004. $11,860,000 of outstanding debt is affected.
This rating action concludes the review for downgrade initiated on January 16, 2015 and removes the bonds from review for downgrade.
The rating action is based on the continued deterioration of the bond program's financial position.
Cash flow projections demonstrate parity insufficiency in 10 years and a revenue insufficiency prior to final bond maturity due to a mismatch between the maturity of the credit-enhanced mortgage on July 1, 2035 and final bond maturity on November 1, 2036.
The Ba2 reflects the possibility for rising interest rates to mitigate the severity of the revenue insufficiency.
