Fort Huachuca-Yuma Proving Ground Arizona Communities LLC Series 2009 Taxable Military HRB Rating Lowered To 'A+'

CHICAGO (S&P Global Ratings) June 4, 2018--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 'AA-'. The outlook is negative. "The downgrade reflects our view of declining basic allowance for housing revenue for the past three years, putting continuous strain on the project's net operating income," said S&P Global Ratings credit analyst John Mante. "This resulted in lower debt service coverage that we consider commensurate with that of lower-rated peers," Mr. Mante added. The rating reflects our view of the project's: Strong economic fundamentals and market dependencies; Very strong strategy and management; Strong coverage level on the bonds; Favorable DSC but

...CHICAGO (S&P Global Ratings) June 4, 2018--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 revenue for the past three years, putting continuous strain on the project's net operating income," said S&P Global Ratings credit analyst John Mante. "This resulted in lower debt service coverage that we consider commensurate with that of lower-rated peers," Mr. Mante added. The rating reflects our view of the project's: + Strong economic fundamentals and market dependencies; + Very strong strategy and management; + Strong coverage level on the bonds; + Favorable DSC but lower than that of higher-rated peers;; and + Fort Huachuca-Yuma's high military essentiality. The bonds were issued for a military housing privatization project with residential units...

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