The 'A/A-1' rating on Washington State Housing Finance Commission's variable-rate demand multifamily housing revenue bonds, series 2002A-B, issued for the Coronado Springs (fka Mallard Lakes) Apartment Project, was placed on CreditWatch with positive implications based on a direct pay LOC provided by PNC Bank N.A. (A/A-1/Watch Positive). The LOC provides coverage of regularly scheduled bond principal and interest payments, as well as all optional and mandatory tenders as provided under the bond documents. The amount of coverage provided by the LOC equals the outstanding principal amount of bonds plus 35 days of interest at the maximum bond rate of 12%. It is anticipated that the current LOC will be replaced by a substitute credit facility provided by Fannie Mae ('AAA/A-1+')
