Moody’s Investors Service has placed Coon Rapids’ $1.8 million of multifamily housing revenue refunding bonds for the Pine Point Apartments project on  watch due to a possible default based on the transaction’s asset-to-debt ratio and projected cash flows.

The bonds, supported by a Ginnie Mae collateralized mortgage loan,  are rated Aaa. Unlike most refunding bonds, the issue does not have a guaranteed investment contract that assures a fixed rate of return on invested cash, so all are subject to interest rate risk on retained revenue.

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