Standard&Poor's Ratings Services lowered its underlying rating (SPUR) on Maricopa County Industrial Development Authority, Ariz.'s multifamily housing revenue bonds series 1999A (Metro Gardens--Mesa Ridge Apartments) to 'B' from 'BBB'. The downgrade reflects: A decline in the debt service coverage ratio to 0.74x maximum annual debt service (MADS) on the senior rated bonds as of June 30, 2003, audited financial statements, and 0.49x MADS as of Jan. 31, 2004, annualized unaudited financial statements; High economic vacancy at both properties due to concessions and overall market conditions; Borrower's indication that there will likely be a draw on the debt service reserve fund to make the July 2004 interest payment on the senior 1999A bonds; Draws on the debt service reserve
