Hanscom Housing Rev Bonds Downgraded

Hanscom Family Housing LLC's taxable military housing revenue bonds series 2004A and 2004B have been downgraded by Standard & Poor's Ratings Services and placed on CreditWatch developing due to projected weak debt service coverage.Series 2004A was downgraded from AA to BBB-plus, and series 2004B was downgraded from A to BB. Although debt service coverage for Hanscom is "significantly strong," there are factors that may cause the coverage to weaken, the rating agency said. The factors are: negligible increases in the military's Basic Allowance for Housing over the past several years; lower-than-expected net operating income, due to construction delays; and diminished capitalized interest in 2007, which was a source of revenue eligible to pay debt service. S&P can be found online at http://www.standardandpoors.com.