Moody’s Investors Service has signaled that the junk-level rating on MJH Education Assistance Illinois IV LLC’s student housing revenue bonds for the Fullerton Village Project has stabilized by revising the outlook to stable from negative on the senior-lien bonds.
Moody’s affirmed the Ca rating for $57 million of debt issued for the housing project at DePaul University in Chicago and C on $15 million of subordinate bonds. The bonds were sold through the Illinois Finance Authority in 2004.
“The change in outlook to stable from negative reflects the improved operational performance of the project, the university affiliation with DePaul, and the project’s payments of missed interest payments from Dec. 1, 2008, through June 1, 2011,” Moody’s wrote.
A significant improvement in cash flow to the project, stemming primarily from increased and stable occupancy and rents for the next several years, could raise the rating.