Approximately $259 million in outstanding debt affected.
New York, June 18, 2012 -- Moody's places 40 Aaa and Aaa(sf) rated local housing finance bond
issues under review for possible downgrade following the downgrade of
Natixis to A2/P-1 from Aa3/P-1. All of the bond issues
are supported by guaranteed investment contracts (GIC's) from Natixis,
and may be subject to: (i) increased principal repayment risk as
a result of the reduced credit quality of Natixis and (ii) Reinvestment
risk that, in the event the GIC is replaced, the new interest
rate from the replacement investment will not be high enough to support
debt service on the bonds.
RATINGS RATIONALE
The following listed bond issues are either single family or multifamily
bonds backed by mortgage backed securities (MBS). The bond issues
have further support in the form of guaranteed investment contracts (GIC's).
The investment contracts guarantee a fixed rate of return on mortgage
revenues received by the trustee and deposited with the bank. The
revenues are paid out every six months, as principle and interest
on the bonds. During the six month period the revenues are held
as deposits with the bank. This exposes the deposits to bankruptcy
risks. Should the bank go into bankruptcy the deposits may be lost,
which could then, in turn, cause a default on the scheduled
payments to bond holders.
Deal Name
1) Macon Housing Authority, GA, Single Family Mortgage Revenue
Bonds, 1998A, B, (GNMA and FNMA Mortgage-Backed
Securities Program), $9.895MM
2) Oak Ridge Industrial Development Board, TN, Multi-Fam
Hsg Rev Ref Bonds, 1998A,B, $(GNMA Collateralized-The
Gardens-South Hill Apartments and Woodlands Apartments Projects),
$11.745MM
3) Housing Auth. (of the City of Athens), GA, Single
Family Mortgage Revenue Bonds, 1998A,B, (GNMA and Fannie
Mae Mortgage-Backed Securities Program)
4) Vallejo City, CA, Multifamily Housing Revenue Bonds,
1998A, (GNMA Mortgage Backed Securities Program), $9.875MM
5) DeSoto Housing Finance Corporation, TX, Multifamily Housing
Revenue Refunding Bonds, 1998A, (Mt. Vernon Apartments),
$11.42MM
6) Elkhart (City of) IN, Multifamily Housing Mortgage Revenue Refunding
Bonds, 1998A,B, (GNMA Collateralized-Prairie
Village Apartments Project)
7) California Statewide Communities Devel. Auth.,
Multifamily Housing Revenue Bonds, 1999O, (GNMA Collateralized
Mortgage Loan-Springdale Apartments), $17.55MM
8) Minnetonka (City of) MN, Multifamily Housing Revenue Refunding
Bonds, 1999A&A-T, (GNMA Collateralized Mortgage
Loan - Cedar Hills East and West Projects), $11.08MM
9) Indianapolis (City of) IN, Multi-Family Housing Rev Refunding
Bonds, 1999, (GNMA Collateralized-Camby Crossing Apartments
Project), $4.981MM
10) Broward County Housing Finance Auth., FL, Single
Family Mortgage Revenue Refunding Bonds, 2000A(Non-AMT),B,C,
$33.724MM
11) California Statewide Communities Devel. Auth.,
Multifamily Housing Revenue Bonds, 2000H, H-T,
(Silver Ridge Apartments), $8.2MM
12) Valley Health Development Corporation, Mortgage Revenue Refunding
Bonds, 2000A,B, (Valley Health Services Project),
$8.795MM
13) Canadian County Home Finance Authority, OK, Single Family
Mortgage Revenue Bonds, 2000A (Non-AMT), B (AMT),
C (Tax), (Canadian County Home Finance Authority and Cleveland County
Home Loan Authority-Mortgage Backed Securities Program),
$12.180MM
14) Sacramento (County of) CA, Housing Authority, Multifamily
Housing Revenue Bonds, 2000H,H-T, (Verandas Apartments
(The), $8.750MM
15) Illinois Health Facilities Authority, Health Facilities Authority
Revenue Bonds, 2001, (GNMA Collateralized - Midwest
Care Center I, Inc.), $3.635MM
16) Butler County Industrial Development Auth, PA, Health
Care Facilities Revenue Bonds , 2001A & B(Taxable), (GNMA
Collateralized - St. John Lutheran Care Center Project),
$10.868MM
17) Bay County Housing Finance Authority, FL, Single Family
Mortgage Revenue Bonds, Series 2001A (AMT), $8.8MM
18) California Statewide Communities Development Authority FHA Insured
GNMA Collateralized (Sunnyside/Vermont Project), 2001 Series A and
Taxable 2001 Series A-T
19) Hampton Redevelopment and Housing Authority, Multifamily Housing
Facility Revenue Bonds (Tidewater Seniors Apartments Project), Series
2001, $6.750MM
20) City of Minneapolis, MN, Multifamily Housing Refunding
Bonds, (GNMA Collateralized Mortgage Loan- East Bank Village
Apartments) Series 2001, $2.3MM
21) Waukesha City Redevelopment Authority, WI, GNMA Collateralized
Development Revenue Bonds, Series 2001A(Avalon Square, Inc.
Project), $19.350MM
22) Shoreview (City of), MN, Multifamily Housing Revenue Bonds
(GNMA Collateralized Mortgage Loan - Lexington Shores Project),
Series 2001 A and 2001B (Taxable), $8.020MM
23) Willoughby (City of) OH, Multifamily Housing Mortgage Revenue
Bonds (GNMA Collateralized - Oak Hill Village Apartments Project),
Series 2002-A and 2002-B (Taxable), $9.415MM
24) Louisiana Local Government Environmental Facilities and Community
Development Authority, Mortgage Revenue Refunding Bonds (GNMA Collateralized
- Sharlo Apartments Project), Series 2002-A and 2002-B
(Taxable), $7.050MM
25) Maine Health & Higher Educational Facilities Authority,
GNMA Collateralized Mortgage Revenue Bonds (Mid Coast Geriatris Services
Corporation Project), Series 2002, $8.83mm
26) San Antonio Housing Finance Corporation, Multifamily Housing
Revenue Bonds (GNMA Collateralized Mortgage Loan - Eagle Ridge
Apartments Project), Series 2002, $12.365MM
27) Essex County Improvement Authority, NJ, Multifamily Housing
Revenue Bonds (Mount Carmel Towers Project), Series 2002,
$5.8m
28) Essex County Improvement Authority, NJ, Multifamily Housing
Revenue Bonds (Ballantyne House Project), Series 2002, $8.15m
29) Columbus Metropolitan Housing Authority, OH, Multifamily
Housing Mortgage Revenue Bonds (GNMA Collateralized - New Village
Homes Project), Series 2002-A, $5.420MM
30) New Jersey Economic Development Authority, GNMA Collateralized
Mortgage Revenue Bonds (Claremont Health System, Inc. Project),
Series 2003A & 2003B (Taxable), $8.075MM
31) Columbus Regional Airport Authority, OH, Multifamily Housing
Revenue Bonds Refunding Bonds (GNMA Collateralized - Partnership
Equities, Inc. Projects), Series 2003-A &
2003-B (Taxable), $18.830MM
32) Vallejo City, CA, Multifamily Housing Revenue Bonds,
1998A, (GNMA Mortgage Backed Securities Program), $9.875MM
33) Columbus Regional Airport Authority, OH, Multifamily Housing
Revenue Bonds (GNMA Collateralized - Joseph Knight Towers &
Wiliam Presser Towers Projects), Series 2004-A & 2004-B
(Taxable), $6.770MM
34) Columbus Regional Airport Authority, OH, Multifamily Housing
Revenue Bonds (GNMA Collateralized - Educator Apartments Project),
Series 2004-A & Series 2004-B (Taxable), $3.880MM
35) Cuyahoga (County of) OH, Multifamily Housing Mortgage Revenue
Bonds (GNMA Collateralized -Carter Manor Apartments Project),
Series 2004, $12.080MM
36) Housing Finance Authority of Manatee County, FL, Single
Family Mortgage Revenue Refunding Bonds, Series 2002- Sub
Series One (Multi-County), and Series 2002 Sub Series Two
(Non-AMT)
37) Arlington County Industrial Development Authority, VA,
Multifamily Housing Refunding Revenue Bonds (Arna Valley View, Limited
Partnership Project), Series 2002
38) Housing Finance Authority of Manatee County, Florida Single
Family Mortgage Revenue Refunding Bonds Series 2002 -Sub Series
Three (Tax Exempt) and Series 2002 - Sub Series Four (Taxable)
39) Summit County Port Authority, OH, Multifamily Housing
Revenue Bonds (GNMA Collateralized - Collinson Apartments Project),
Ser
40) Cuyahoga (County of) OH, Senior Housing Mortgage Revenue Bonds
(R.H. Myers Apartments Project), Series 2007,
$7,291,400.00
WHAT COULD MAKE THE RATING GO: UP
- Not Applicable
WHAT COULD MAKE THE RATING GO: DOWN OR BE WITHDRAWN
- Further downgrade of the GIC provider
- Drop in the asset to debt ratio
The principal methodology used in this rating was Metholodogy Updated:
Ratings that Rely on Guaranteed Investment Contactract published in December
2008. Please see the Credit Policy page on www.moodys.com
for a copy of this methodology.
REGULATORY DISCLOSURES
The Global Scale Credit Ratings on this press release that are issued
by one of Moody's affiliates outside the EU are endorsed by Moody's
Investors Service Ltd., One Canada Square, Canary Wharf,
London E 14 5FA, UK, in accordance with Art.4 paragraph
3 of the Regulation (EC) No 1060/2009 on Credit Rating Agencies.
Further information on the EU endorsement status and on the Moody's
office that has issued a particular Credit Rating is available on www.moodys.com.
For ratings issued on a program, series or category/class of debt,
this announcement provides relevant regulatory disclosures in relation
to each rating of a subsequently issued bond or note of the same series
or category/class of debt or pursuant to a program for which the ratings
are derived exclusively from existing ratings in accordance with Moody's
rating practices. For ratings issued on a support provider,
this announcement provides relevant regulatory disclosures in relation
to the rating action on the support provider and in relation to each particular
rating action for securities that derive their credit ratings from the
support provider's credit rating. For provisional ratings,
this announcement provides relevant regulatory disclosures in relation
to the provisional rating assigned, and in relation to a definitive
rating that may be assigned subsequent to the final issuance of the debt,
in each case where the transaction structure and terms have not changed
prior to the assignment of the definitive rating in a manner that would
have affected the rating. For further information please see the
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Information source used to prepare the rating is the following:
parties not involved in the ratings.
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entity, obligation or credit satisfactory for the purposes of issuing
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for information on (A) MCO's major shareholders (above 5%) and
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for the last rating action and the rating history.
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the lead rating analyst and to the Moody's legal entity that has issued
the rating.
Timothy J. Mone
Associate Analyst
Public Finance Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
David A. Parsons
Asst Vice President - Analyst
Public Finance Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Releasing Office:
Moody's Investors Service, Inc.
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JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Moody's places 40 Aaa and Aaa(sf) rated local housing finance bond issues under review for possible downgrade following the downgrade of Natixis to A2/P-1 from Aa3/P-1.
