Standard & Poor’s Wednesday revised the outlook to positive on A-minus-rated Sahara Mobile Home Park revenue bonds. The bonds were issued in 2002 using Palm Springs as a conduit.
“The positive outlook reflects the improving debt service coverage and strong occupancy at the project,” analyst Karen Fitzgerald said in a release. “If the property’s performance continues to strengthen, upward rating action is possible. However, increases in expenses without commensurate increases in revenues could impair the ability of the project to maintain the current debt service coverage ratio and may not warrant an upward rating action.”
The bonds are secured by a first-lien pledge of net operating revenues from Sahara Mobile Home Park. The park, which rents spaces to residents over 55, is owned by a nonprofit organization.
The 2002 bond issue consisted of $9.3 million of senior revenue bonds plus $2 million of unrated subordinate bonds.