Standard&Poor's Ratings Services revised its rating outlook on Illinois Finance Authority's (Galesburg Towers project) $1.7 million housing revenue refunding bonds series 1994A to negative from stable. The outlook revision reflects the following factors: Contract rent 164% above fair market rents and no rental increase since 2000; High expense ratio; Debt service coverage consistently below 1.0x; Project reliance on the owner contributions to pay debt service; and Debt service reserve fund sized at only seven months' maximum annual debt service (MADS). The following factors, which mitigate against more severe rating action being taken, include: A Section 8 subsidy, which is coterminous with bond maturity; Fully amortizing debt maturing in five years; Occupancy at the property of 100% occupancy and
