Rationale Standard&Poor's Ratings Services affirmed its 'A' rating on Minneapolis (Nicollet Towers project), Minn.'s section 8 assisted multifamily housing revenue bonds series 1996. The affirmation reflects the following strengths: Recent rental increase received by the project in fiscal 2007; Strong occupancy at the project of 97%; Debt service reserve fund funded at less than maximum annual debt service (MADS); and Good condition of the property as indicated by the high REAC score of 92b. However, the above strengths are offset by the following weaknesses: Decline in debt service coverage (DSC) to 1.28x MADS level from 1.48x in the last fiscal; Contract rent higher than area's fair market rent (FMR); and Increase in expenses leading to the worsening of
