Student Housing Rev Bonds Downgraded

The rating on $14.5 million of Will County (Ill.) student housing revenue bonds (Joliet Junior College Project) has been lowered from CC to B-minus by Fitch Ratings and removed from Rating Watch Negative.The bonds financed the construction of a privately managed, 296-bed student residence on the JJC campus, and Foundation Housing LLC owns the project in "a structure typical of off-balance-sheet student housing transactions," Fitch said. The downgrade was based on the financial deterioration of the project. "Without prompt, substantial improvement, Fitch believes that the project is likely to default, perhaps resulting in a bankruptcy filing, no later than the end of 2005, based on the limited amount of information available," the rating agency said. Fitch can be found online at http://www.fitchratings.com.