The rating downgrade on Illinois Development Finance Authority's bonds reflects declining debt service coverage (DSC). The bonds are supported by a Section 8 subsidized mortgage loan. For year-ended June 30, 1998, audited financial statements demonstrate that DSC on the project is 0.98 times (x). This compares unfavorably to that of prior years. The DSC has been declining over the past years, from 1.11x in fiscal 1995 to the current level, because expenses have outpaced revenues. The project manager, Metroplex, anticipates improved coverage for fiscal 1999. The trustee, U.S. Bank Trust N.A., has confirmed that the March 1999 debt service payment has been made without drawing on the debt service reserve fund. The housing assistance payment contracts are coterminous with the
