Standard&Poor's Ratings Services affirmed its 'BBB-' long-term rating on Impact CIL Parent LLC, Calif.'s subordinated pass-through notes series 2003-1. The outlook is stable. The rating reflects our opinion of the following strengths of the transaction: Strong average debt service coverage (DSC) of 1.37x for the issuer's permanent loan portfolio, consisting of 45 loans on 42 affordable housing properties; Cash balance of approximately $42.7 million available for additional loan purchases as of Dec. 31, 2011; Principal and interest payments from subordinate certificates from the Impact Funding 2010 securitization; and Strong loan servicer in Pacific Life. These strengths are offset by our view of six permanent loans on the servicer's watchlist, with a total par amount of $10.1 million; one
