NEW YORK - Standard & Poor's Ratings Services said it raised its rating on Norfolk Redevelopment and Housing Authority (Merrimack Landing Apartments), Va.'s $4.7 million revenue refunding bonds series 1997 (Merrimack Landing Apartments) to AA from AA-minus. The outlook is stable.
The upgrade reflects exceptional debt service coverage of more than 3x maximum annual debt service in fiscal 2006, a very low loan-to-value ratio of 17%, increasing rental income, and high occupancy rates
The audited financial results for the fiscal year ended June 30, 2006, indicate that the performance of the property continues to be strong, with debt service coverage on the senior bonds increasing to 3.05x from 2.60x in fiscal 2005 and 2.28x in fiscal 2004. Though the unaudited financial statements as of Dec. 31, 2006, reflect a slight decline in coverage, coverage is projected to remain strong in 2007.
