Standard&Poor's Ratings Services lowered its rating on City of Portland, Ore.'s multifamily housing revenue bonds, series 1998A (Yards at Union Station Project) to 'BB+' from 'AAA' based on our view of the project's reliance on short-term market rate investments. Standard&Poor's also removed the rating from CreditWatch with negative implications, where it had been placed May 12, 2010. The rating reflects our view of the following: Revenues from mortgage debt service payments and investment earnings are insufficient to pay full and timely debt service on the bonds plus fees until maturity; Asset-liability parity is projected to fall below 100% in 2027; and Credit strengths in the issue include the high credit quality of the Fannie Mae pass-through
