NEW YORK – Moody’s Investors Service said it placed the following 5 Aaa-rated state HFA and 5 Aaa-rated local housing finance agency multifamily transactions on Watchlist for possible downgrade, following a review of information provided by the trustee concerning the transactions' asset to debt ratios, which are all below 101%.
This action affects approximately $86,785,000 in outstanding debt.
None of these issues have a Guaranteed Investment Contract (GICs) that assures a fixed rate of return on invested cash, and therefore all are subject to interest rate risk on retained revenues. As a result, in this very low interest rate environment, revenue from the monthly mortgage receipts and interest earned on those receipts from money market funds or other short-term investments may not be high enough, in combination with mortgage payments, to support debt service on the bonds. Over the next several weeks, Moody's will review the affected issues and take appropriate rating action as necessary.
1. $6,100,000 of Ohio Housing Finance Agency, Taxable Mortgage Revenue Refunding Bonds, Series 2002A, B, C & D (GNMA Collateralized - Oakleaf/Toledo Apartments Project). Last reviewed on 4/20/2002.
2. $4,405,000 of Ohio Housing Finance Agency, Multifamily Housing Mortgage Revenue Bonds (GNMA Collateralized - Covenant House Apartments Project) Series 2008C. Last reviewed on 4/25/2008.
3. $7,075,000 of Michigan State Housing Development Authority, Limited Obligation Multi-Family Housing Revenue Bonds, Series 2006 (GNMA Collateralized Program - Deaconnes Towers Apartments. Last reviewed on 7/20/2006.
4. $1,683,5000 of Community Development Administration Multifamily Development Revenue Refunding Bonds (Avalon Lea Apartments Project) Series 1997. Last reviewed on 10/15/1997.
5. $14,340,000 of Washington State Housing Finance Commission Multifamily Housing Revenue Bonds (Stonebrook Apartments Project) 2003A & B. Last reviewed on 12/12/2003.
6. $11,835,000 of Bay County Housing Finance Authority, FL, Single Family Mortgage Revenue Bonds, Series 2002-B. Last reviewed on 1/28/2008.
7. $2,780,000 of Cobb Co. Housing Auth. Multi-family hsg. rev. Refunding ser. '94A & B (FHA ins. mtge. loan-Garrison Plantation Devel.) (FNMA coll.). Last reviewed on 6/14/2004.
8. $5,810,000 of St. Paul Housing & Redevelopment Auth., MN Multifamily Housing Revenue Bonds (Winnipeg Apartments Project) 2007. Last reviewed on 12/3/2007
9. $3,235,000 of Rock Hill City Housing Authority, SC Multfamily Housing Housing Revenue Bonds (Highland Park Mill Proj.)2004. Last reviewed on 10/2/2008.
10. $14,370,000 of Maricopa County Industrial Dev. Auth., AZ, Senior Living Healthcare Revenue Refunding Bonds (GNMA Collateralized Mortgage Loan - Immanuel Campus Care Project), 2006 A. Last reviewed on 1/17/2006.
