Summary: Capital Trust Agency, Florida H-Bay Ministries Inc., Texas; Affordable Housing

S&P Global Ratings lowered its ratings on Capital Trust Agency, Fla.'s series 2018A senior living bonds to 'CC' from 'B+' and second-tier series 2018B senior living bonds to 'CC' from 'B-'. The bonds were issued on behalf of the borrower, H-Bay Ministries Inc., Texas, for the Superior Residences project in Florida. At the same time, we removed both ratings from CreditWatch where they were placed with negative implications on March 1, 2021. The outlook is negative. The bonds were first placed on CreditWatch with negative implications March 1, 2021, as detailed in our analysis, based on persistently low occupancy, as well as financial statements that lacked independent third-party audits. The CreditWatch placement was extended on May 26, 2021. The project

...S&P Global Ratings lowered its ratings on Capital Trust Agency, Fla.'s series 2018A senior living bonds to '##' from 'B+' and second-tier series 2018B senior living bonds to '##' from 'B-'. The bonds were issued on behalf of the borrower, H-Bay Ministries Inc., Texas, for the Superior Residences project in Florida. At the same time, we removed both ratings from CreditWatch where they were placed with negative implications on March 1, 2021. The outlook is negative. The bonds were first placed on CreditWatch with negative implications March 1, 2021, as detailed in our analysis, based on persistently low occupancy, as well as financial statements that lacked independent third-party audits. The CreditWatch placement was extended on May 26, 2021. The project paid scheduled debt service on Jan. 1, 2021, without the use of draws on the debt service reserve fund (DSRF), partially assisted by deferring payments to the owner and asset manager, and funds received under the federal government's Paycheck...

Summary