Standard&Poor's Ratings Services lowered its underlying rating (SPUR) on Maricopa County Industrial Development Authority (Metro Gardens--Mesa Ridge Apartments), Ariz.'s $23 million multifamily housing revenue bonds series 1999A to 'CC' from 'B' and placed the rating on CreditWatch with negative implications. The downgrade reflects: The trustee's draw on the debt service reserve fund (DSRF) to make the debt service payment due on July 1, 2005; The trustee's indication that there will likely be a further draw on the debt service reserve fund to make the Jan. 1, 2006, debt service payment; Insufficient funds to pay debt service on the unrated series 1999B bonds as of July 1, 2005; A decline in the debt service coverage ratio to 0.31x maximum
