...S&P Global Ratings has lowered its long-term rating on Fort Huachuca-Yuma Proving Ground (YPG) Arizona Communities LLC's series 2009 taxable military housing revenue bonds (HRB) to 'A+' from '##-'. The outlook is negative. The downgrade reflects our view of declining basic allowance for housing (BAH) revenue for the past three years, putting continuous strain on the project's net operating income. This resulted in lower debt service coverage (DSC) that we consider commensurate with that of lower-rated peers. The rating reflects our view of the project's: + Strong economic fundamentals and market dependencies, reflecting very strong demand drivers and an adequate local housing market; + Very strong strategy and management bolstered by experienced ownership and property management teams and a joint venture partnership with the U.S. Department of Defense (DoD); + Strong coverage level on the bonds, reflecting the transaction's ample over-collateralization; + Fort Huachuca-Yuma's high military...
