...CHICAGO (S&P Global Ratings) May 31, 2018--S&P Global Ratings has lowered its rating nine notches to '##+' from '##+' on Los Angeles' series 2001A single family home mortgage revenue bonds. At the same time, S&P Global Ratings removed the rating from CreditWatch, where it was placed with negative implications on Feb. 28, 2018. The outlook is stable. Ginnie Mae mortgage backed securities and Fannie Mae passthrough certificates secure the bonds. "The downgrade reflects our view of the credit's asset-to-liability parity below 1.0x, investment earnings that are insufficient to cover full and timely debt service on the bonds, and insufficiency of funds to cover reinvestment risk in the event of prepayment," said S&P Global Ratings credit analyst John Mante. The downgrade follows our review of updated financial information for the project in accordance with our criteria, which states that insufficient revenues to cover debt service and other expenses could lead to lowering the rating to a speculative...
