The rating on Illinois Development Finance Authority's bonds is affirmed; however, the outlook is changed to negative based on: * Declining debt service coverage, * Sufficiency of reserves, * Quality of investments, and * Management and oversight provided by Metroplex. The bonds are secured by a mortgage loan that is supported by section 8 subsidy payments. For the year ended June 30, 1997, audited financial statements demonstrate that debt service coverage (DSC) on the project is 1.046 times (x). This compares unfavorably to that of prior years. The DSC has been declining, from 1.19x in fiscal 1994 to the current level as a result of expense growth outpacing revenue growth. The current level is slightly below the benchmark of 1.05x
