Standard&Poor's Ratings Services affirmed its 'CC' rating on Maricopa County Industrial Development Authority, Ariz.'s senior living facilities revenue bonds, series 2004A, issued on behalf of Christian Care Mesa II for its Fellowship Square-Brown&Center Project. The outlook is negative. The rating reflects our view of the following factors: Low, but stable, debt service coverage (DSC) of 0.57x maximum annual debt service (MADS) based on audited 2011 financial data; Continued draws on the project's debt service reserve fund (DSRF) to pay debt service; A DSRF sized at approximately six months' MADS; A low, but improved, occupancy rate of 84% at the project in 2011; Investments and insurance coverage that remain commensurate with the rating on the bonds; and
