Standard&Poor's Rating Services lowered its rating to 'AA/A-1+' from 'AA+/A-1+' on the Washington State Housing Finance Commission's variable-rate demand multifamily housing revenue bonds, series 2004A and 2004B (taxable), issued for the Deer Run West Apartments Project. The rating change is based on the substitution of the existing LOC from Bank of America, NA ('AA/A-1+') with an irrevocable direct-pay LOC provided by Wachovia Bank, NA ('AA/A-1+'), effective June 15, 2007. The new LOC will provide payment for regularly scheduled principal and interest, as well as for unremarketed tendered bonds, for an amount equal to 34 days at a 12% maximum rate of interest in the daily and weekly interest rate modes. The bonds currently bear interest in a weekly
