Standard&Poor's Rating Services placed its 'AA+/A-1+' rating on Michigan State Housing Development Authority's (Pedcor Investments-2000-XLVI) variable-rate limited obligation multifamily housing revenue bonds on CreditWatch with negative implications. The bonds were placed on CreditWatch due to the substitution of the confirming LOC provided by Federal Home Loan Bank of Chicago (AA+/A-1+) with a substitute LOC provided by Citibank N.A. (AA+/Watch Neg/A-1+). The LOC that will be provided by Citibank N.A has an effective date of Nov. 28, 2007, and shall provide for principle of an interest on the bonds bearing interest only in the weekly rate mode. The substitute LOC provides for a maximum of 45 days interest at 12% annually. The substitute LOC provided by Citibank N.A. will
