The rating on the Illinois Development Finance Authority's bonds, issued for Sandwich Apartments, is downgraded and removed from CreditWatch where it was placed on March 16, 1998. The downgrade reflects: * Lower than expected debt service coverage, and * Increase in operating expenses. As of the audited financial report dated June 30, 1997, debt service coverage was 1.02 times (x) current year debt service. This coverage was expected to be 1.18x when the bonds were rated in 1994. Since the time of the rating, operating expenses have increased nearly 54% while revenues have increased only 22%. Precluding a lower rating has been the ability of management to decrease the expense gap while continuing to increase revenues. Between 1996 and 1997,
