Transaction Update: Illinois Finance Authority (Series 2006)

Standard&Poor's Ratings Services lowered its rating on Illinois Finance Authority's (the issuer's) $10 million adjustable rate demand revenue bonds series 2006 due Oct. 1, 2040, (the bonds) to 'A-/A-2' from 'A/A-1' following the replacement of the irrevocable direct-pay letter of credit (LOC) that Bank of America N.A. ('A/A-1') had provided with a new LOC from FirstMerit Bank N.A. ('A-/A-2'). The 'A-/A-2' rating reflects our opinion of the credit and liquidity support that FirstMerit Bank N.A. provides in the form of an irrevocable direct-pay LOC during the weekly and daily interest rate modes (the rated modes). The LOC covers the entire principal balance and 61 days of interest accruals at a 9% maximum bond rate. During the rated modes,

...Standard & Poor's Ratings Services lowered its rating on Illinois Finance Authority's (the issuer's) $10 million adjustable rate demand revenue bonds series 2006 due Oct. 1, 2040, (the bonds) to 'A-/A-2' from 'A/A-1' following the replacement of the irrevocable direct-pay letter of credit (LOC) that Bank of America N.A. ('A/A-1') had provided with a new LOC from FirstMerit Bank N.A. ('A-/A-2'). The 'A-/A-2' rating reflects our opinion of the credit and liquidity support that FirstMerit Bank N.A. provides in the form of an irrevocable direct-pay LOC during the weekly and daily interest rate modes (the rated modes). The LOC covers the entire principal balance and 61 days of interest accruals at a 9% maximum bond rate. During the rated modes, we believe that the coverage amount is sufficient to pay bond principal and maximum accrued interest, considering the seven day interest reinstatement period, and any additional time that may elapse before a full payment is made to the bondholders. The...

Transaction Update Report