Coulee Medical Foundation, WA And Los Angeles Housing Revenue Bond Ratings Placed On CreditWatch Negative

CHICAGO (S&P Global Ratings) March 1, 2018--S&P Global Ratings placed its 'AA+' rating on Los Angeles' series 2001A and 2001B single-family home mortgage revenue bonds (the mortgage-backed-securities (MBS) program) and Coulee Medical Foundation, Wash.'s series 2009A taxable revenue build America bonds on CreditWatch with negative implications. Ginnie Mae MBS, Fannie Mae pass-through certificates, and a guaranteed investment contract (GIC) secure Los Angeles' bonds. The CreditWatch placement of the Los Angeles bond ratings reflects S&P Global Ratings' view that MBS prepayments remain in the revenue fund, invested in a lower-yielding GIC with MassMutual instead of redeeming higher-yielding debt. This has resulted in an asset-to-liability parity ratio below 100% as of Jan. 31, 2018, which could result in a significant lowering of

...CHICAGO (S&P Global Ratings) March 1, 2018--S&P Global Ratings placed its '##+' rating on Los Angeles' series 2001A and 2001B single-family home mortgage revenue bonds (the mortgage-backed-securities (MBS) program) and Coulee Medical Foundation, Wash.'s series 2009A taxable revenue build America bonds on CreditWatch with negative implications. Ginnie Mae MBS, Fannie Mae pass-through certificates, and a guaranteed investment contract (GIC) secure Los Angeles' bonds. The CreditWatch placement of the Los Angeles bond ratings reflects S&P Global Ratings' view that MBS prepayments remain in the revenue fund, invested in a lower-yielding GIC with MassMutual instead of redeeming higher-yielding debt. This has resulted in an asset-to-liability parity ratio below 100% as of Jan. 31, 2018, which could result in a significant lowering of the rating to the speculative-grade category if not corrected within the 90-day outlook period. The CreditWatch placement of the Coulee Medical Foundation bond rating...

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