Fitch Ratings said it has downgraded to BB from BBB-plus the rating on the $69 million Toledo-Lucas County Port Authority, Ohio, (Crocker Park Public Improvement Project) special assessment revenue bonds, series 2003.
The rating outlook is stable.
The bonds are special limited obligations payable by the issuer from special assessments levied on the assessment property by the city of Westlake. A debt service reserve fund equal to maximum annual debt service (excluding the final maturity) is fully funded through a guaranteed investment contract.
Project cash flows have eroded from already very weak levels and in fiscal 2011 covered only about one-half of the substantial mortgage payment. While mortgage payments are legally subordinate to special assessment payments this shortfall heightens Fitch's concerns about the developer's continued willingness and ability to continue to make special assessment payments.