Capital Trust Agency, Florida NV Homestead Apartments Ltd.; Section 8

S&P Global Ratings lowered its rating on Capital Trust Agency, Fla.'s series 2018 A multifamily housing revenue bonds (Coral Gardens Apartments Project), issued on behalf of the borrower, NV Homestead Apartments Ltd., four notches to 'B+' from 'BBB-'. The outlook is negative. At the same time, we removed the rating from CreditWatch, where it was placed on March 29, 2019, with negative implications. The rating action reflects our view of the following: Substantial and rapid financial strength deterioration as evidenced by the project's S&P calculated debt service coverage (DSC) ratio of 0.95x, calculated from the project's 11-month annualized 2018 audited financial statements, down from the owner pro forma of 1.31x for fiscal 2017, at the time of the issuance. This

...S&P Global Ratings lowered its rating on Capital Trust Agency, Fla.'s series 2018 A multifamily housing revenue bonds (Coral Gardens Apartments Project), issued on behalf of the borrower, NV Homestead Apartments Ltd., four notches to 'B+' from '###-'. The outlook is negative. At the same time, we removed the rating from CreditWatch, where it was placed on March 29, 2019, with negative implications. The rating action reflects our view of the following: + Substantial and rapid financial strength deterioration as evidenced by the project's S&P calculated debt service coverage (DSC) ratio of 0.95x, calculated from the project's 11-month annualized 2018 audited financial statements, down from the owner pro forma of 1.31x for fiscal 2017, at the time of the issuance. This indicates the project could be facing cash flow problems; + Weak strategy and oversight by the owner, as evidenced by its oversight and management practices at other properties it owns and operates, as well as our untimely receipt...

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