Fitch Eyes Military Housing Deals

Ten classes from five military housing transactions with surety bonds from MBIA and Ambac have been placed on Rating Watch Negative by Fitch Ratings. The affected securities are as follows: classes I, II, and III of Pacific Beacon LLC (CA) Military Housing (San Diego) 2006 series A; classes I and II of Ohana Military Communities LLC (HI) Military Housing Revenue Bonds (Marine Corps Hawaii Housing Privatization Project) 2007 series A; class I of Ohana Military Communities LLC (HI) Military Housing Revenue Bonds (Navy Hawaii Housing Privatization Project) 2006 series A; class I of Ohana Military Communities LLC (HI) Military Housing Revenue Bonds (Marine Corps Hawaii Housing Privatization Project) 2006 series B; and Hampton Roads PPV LLC Military Housing Taxable Revenue Bonds (Hampton Roads Unaccompanied Housing Project) 2007 series A. The Hampton Roads issue is insured by Ambac, and the other four are insured by MBIA. "While all of the military housing projects referenced above are in line with initial projections, Fitch is evaluating how each project's cash flows are performing, and will assess the credit value associated with MBIA's and Ambac's ability to meet their obligations under each surety bond for the above transactions," the rating agency said.