MF Revenue Bonds Downgraded

California Statewide Communities Development Authority's multifamily housing revenue refunding bonds (Quail Ridge Apartments Project), series 2002 E-1 and E-3, have been downgraded from A to BBB-plus and BBB to BBB-minus, respectively, by Standard & Poor's Ratings Services.The outlook is stable. S&P credit analyst Karen Fitzgerald said the Quail Ridge project had debt service coverage ratios that were "still well below" pro forma debt service coverage levels and a "moderately high" overall rated loan-to-value ratio of 94%. In addition, the project has incurred "a significant increase" in annual expenses, she said. The weaknesses are "somewhat offset" by affordable rents and favorable location in a strong real estate submarket, S&P said. Quail Ridge is a 360-unit garden-style multifamily apartment complex located in Rialto, east of the Los Angeles metropolitan area. The rating agency can be found online at http://www.standardandpoors.com.