...March 1, 2021 NEW YORK (S&P Global Ratings) March 1, 2021--S&P Global Ratings has placed its 'B+' rating on Capital Trust Agency, Fla.'s series 2018A senior living bonds and its 'B-' rating on the agency's second-tier 2018B senior living bonds on CreditWatch, with negative implications. The bonds were issued for H-Bay Ministries Inc., Texas' Superior Residences project in Florida. "The CreditWatch placement is based on persistently low occupancy--reported as 60% for the full year--leading to debt service coverage for 2020 that is below 1x on both tiers of bonds, as per our calculations," said S&P Global Ratings credit analyst Adam Torres. We note that the project paid debt service in January 2021 without the use of draws on the debt service reserve fund, partially assisted by deferred payments to the owner and asset manager, and secured loans under the federal government's Paycheck Protection Program that reimbursed certain operating expenses. We further note that while the borrower has...
