Standard&Poor's Ratings Services raised its rating on Minneapolis' (Olson Townhouses) Section 8-assisted series 1993 multifamily housing revenue bonds by two notches to 'A-' from 'BBB'. The outlook is stable. The raised rating reflects our view of: The continued improvement in debt service coverage (DSC), to 1.39x maximum annual debt service (MADS) in fiscal 2012 from 1.25x in 2011; The strong demand at the property, reflected by a 100% occupancy rate and a waiting list of 135 families; The 2.6% income increase and 2.3% decrease in expenses, leading to improvement in the expense ratio; and The debt service reserve fund (DSRF) funded at 12 months' MADS. These strengths are partly offset, however, by the property's declining Real Estate Assessment
