The 'AAA/A-1+' rating on Illinois Finance Authority's variable-rate demand multifamily housing revenue bonds series 2005, issued for the Villagebrook Apartments Project on behalf of Villagebrook Apartments L.P., reflects the delivery of a Freddie Mac direct-pay credit enhancement agreement. Freddie Mac is 'AAA' eligible based on its relationship with the federal government. The credit enhancement agreement will provide credit coverage of principal and interest due on the bonds and liquidity coverage in the event of a failed remarketing of the bonds. The credit facility is sized at principal plus 35 days' interest calculated at the maximum rate of 12% on the bonds in the variable-rate mode. The bonds may also be converted to the reset- or fixed-rate mode. The bonds will
