The underlying rating on Maricopa County Industrial Development Authority, Ariz.'s bonds, issued for Stanford Court Apartments Project, reflects: * A well-maintained family apartment complex with an affordable and slightly competitive rental structure; * A broad and expanding Phoenix, Arizona economy with solid growth indicators; * Good project ownership by Union Court, L.L.C. and management by Kay Kay Realty Corp.; * Strong projected cash flows reflecting a coverage of maximum annual debt service on senior bonds at 1.50 times (x); * A debt service reserve funded at maximum annual senior debt service; * Permitted investments rated 'A' or higher; and * A legal structure which includes a gross revenue pledge and first mortgage-lien on the property. Union Court's sole and managing
