Moody’s Investors Service on Tuesday put $473 million of taxable revenue bonds issued for Fort Benning Family Communities LLC on watch for a possible downgrade.

The debt was issued as military housing revenue bonds in several series in 2006.

According to the rating report, the negative watch was due to the recent downgrade of American International Group Inc. and the funding of any shortfall in debt service by way of the excess collateral funding agreement between FBFC and AIG Financial Products. There were concerns that the insurer’s struggles could result in the debt service reserve fund not being covered if there was a shortfall.

The Fort Benning bonds were issued as Series A with three classes. Class I was sold in the amount of $216.3 million and rated Aaa, Class II was sold in the amount of $133.3 million and rated Aa3, and Class III was sold in the amount of $118.5 million and rated A3.

The debt was issued to fund the costs associated with the design, demolition, construction, and renovation of 4,200 multifamily housing units.

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