Standard&Poor's Ratings Services affirmed its 'CC' rating on Maricopa County Industrial Development Authority, Ariz.'s senior living facilities revenue bonds series 2004A, issued on behalf of the Christian Care Mesa II Inc. project. The outlook is negative. In our view, the rating reflects the following weaknesses: Further decline in the coverage levels of the property, with coverage levels falling to 0.25x maximum annual debt service based on 2008 financial results, and 2009 year-to-date financial statements indicating similar coverage; 8% decrease in rental revenues in 2008, leading to a higher expense ratio; and Low occupancy at the property, with year-to-date occupancy at 67% as of November 2009. In our view, the negative outlook reflects the project's very low debt service
