Fitch Ratings yesterday put bonds that financed part of the expansion of the Carousel Center Mall in Syracuse, N.Y., on negative watch, citing declines in pledged revenues. The Syracuse Industrial Development Agency issued $228.1 million of tax-exempt bonds and $97.6 million taxable bonds backed by payments in lieu of taxes in 2007. Fitch rates the two series of bonds an underlying AA-minus.
A guaranteed investment contract with XL Asset Funding Co. was projected to yield approximately 4.9% annually on debt service reserve funds but that contract has been terminated, a Fitch report said. Several bankruptcies have also led some of the mall’s tenants to terminate their leases while some other tenants are delinquent on their PILOT payments, Fitch said.