Standard&Poor's Ratings Services assigned its 'AA+/A-1+' rating to Michigan State Housing Development Authority's (Pedcor Investments LLC) variable-rate demand limited obligation multifamily housing refunding revenue bonds, Sand Creek I, Sand Creek II, and Teal Run I Apartments based on irrevocable letters of credit (LOCs) provided by Citibank N.A. (AA+/A-1+). The LOCs provide coverage for payment of principal of and interest on the bonds, including payment of unremarketed tendered bonds. The initial LOCs provide for a maximum of 45 days of interest coverage at 12% annually. The stated expiration date of the LOCs is Oct. 26, 2017. Upon expiration date, the rating will be withdrawn unless the LOCs are extended pursuant to their terms, or unless alternate LOCs are delivered.
