Standard & Poor’s last week dropped the underlying rating on pieces of Midwest Family Housing LLC’s Series 2006A bonds and assigned a negative outlook due to poor debt-service coverage ratios and suspension of work on the project.
The Class I bonds were downgraded to AA-minus from AA, the Class III bonds to BB from BB-plus, and the Class IV bonds to B from BB. Standard & Poor’s also affirmed the BBB-minus on the Class II bonds. The outlook on all the bonds is negative. The class I, II, and III bonds are insured by CIFG Assurance NA, which is not rated by Standard & Poor’s.