BRADENTON, Fla. -Standard & Poor'slast week dropped to junk status the ratings for several affordable housing bond issues, citing surging interest rates due to auction-rate market disruptions and increasing losses on swaps.

Standard & Poor's lowered Atlantic Housing Foundation Inc.'s auction-rate Series 2005A and 2005A-T bonds to BB from AA-minus. The agency also lowered the rating on its Series 2005B bonds to CCC from A, and its Series 2005C bonds to CC from BBB, and placed all of Atlantic's bonds on CreditWatch with negative implications.

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