The rating on the Illinois Development Finance Authority's Section 8 elderly housing revenue refunding bonds series 1994A (Galesburg Towers Project) has been lowered to 'BB' from 'A', and the outlook has been revised to stable from negative. The downgrade reflects: Declining debt service coverage; Rents set at 177% above the HUD fair market rents, and inadequate rent increases from HUD to mitigate expense increases; and Expense increases of 6.7% over the previous year. The audited financial results for the year ended Oct. 31, 2001, indicate that the performance of the property was 1.06 times, down from the prior year of 1.12 times. This trend of financial deterioration is expected to continue, based on increased expenses and the anticipation that the
