Standard&Poor's Ratings Services assigned its 'AAA' rating to Illinois Finance Authority's multifamily housing revenue bonds series A, issued for the Valley View Apartments. The rating is based on a forward delivery structure in which the bonds are issued in principal amounts corresponding to construction loan advances under the mortgage loan. Bond proceeds from the incremental sales of the bonds will be used to purchase Ginnie Mae construction loan certificates (CLCs). This innovative structure, which has been rarely used in the tax-exempt market, eliminates negative arbitrage typically incurred in new construction transactions. Negative arbitrage occurs when assets under the trust estate earn less interest than the amount necessary to cover interest due on the bonds. Upon project completion and
