Standard&Poor's Ratings Services lowered its ratings to 'BBB-' from 'A-' on Indianapolis, Ind.'s (Heart's Landing Apartments) multifamily housing revenue bonds series 2011A and taxable 2011A-T, and to 'BB' from 'BBB-' on the subordinate series 2011B bonds. The outlook is negative. The downgrade reflects the following weaknesses: A decline in coverage to 1x maximum annual debt service (MADS) on the series 2011 A&A-T bonds and to 0.91x on the series 2011B bonds, based on the first eight months of 2012's financials; Low occupancy rates with increasing bad debts; and Increase in total expenses, leading to deterioration in the expense ratio; However, these weaknesses are somewhat offset by the project's: Approved rental increases in 2011, as contract rent
