S&P Global Ratings' U.S. Public Finance Housing rating actions for second-quarter 2023 included eight positive rating actions and nine negative rating actions. There were also 69 affirmations.
Second-Quarter Rating Actions
We took positive rating actions on eight individual ratings, which included eight upgrades, two of which also assigned a positive outlook.
The upgrades reflected improved financial metrics and strong and stable management for one community development finance institution and three state housing finance agencies' ICRs, demonstration of the resolution's ability to withstand projected losses at the 'AAA' level and meet all other requirements to be rated above the sovereign and the implementation of the mortgage revenue bond program (MRBP) criteria for two MRBP entities, improved coverage and strong occupancy for two rental housing bond programs in the military and affordable housing subsectors, and improved financial performance and overall debt profile for one social housing provider. See table 1 for the list of positive rating actions in second-quarter 2023.
We took negative rating actions on nine individual ratings, which included seven downgrades and two negative outlook revisions.
The downgrades reflected much-weaker coverage after the issuance of the series 2023 bonds for a capital fund financing program bonds entity; rating dependency on a GIC provider - whose outlook was revised to stable from positive for a Federally Enhanced Housing organization; a borrower's projected shortfall in funds available for debt service on the next interest payment date, likely requiring a draw on debt service reserve funds for one age-restricted rental housing bonds credit with three tranches; weaker coverage for two Section 8 rental housing bond entities; and weakened view of management and governance for a public housing authority. See table 2 for the list of negative rating actions in second-quarter 2023.
There were 69 affirmations out of 87 total rating actions during second-quarter 2023, or about 80% of rating actions, slightly more than in first-quarter 2023 (78%). As of July 2023, about 93% of our ratings carry stable outlooks, slightly down from last quarter (95%), partially reflecting continued resiliency and strong metrics presented by our rated universe. (For more information, see "Outlook For U.S. Public Finance Housing: Economic Winds Won't Blow The House Down," published Jan. 19, 2023.) We typically review the parity rating of an issuer in conjunction with any new-money or refunding debt sale. During second-quarter 2023, we rated 39 new sales in conjunction with affirmations. This pace was slightly higher than the new sale activity we saw in the first-quarter 2023, which saw 34 new sales. See table 3 for the list of affirmations and new sales in second-quarter 2023.
We also rated five new issues in second-quarter 2023. Two were rated under our "U.S. Federally Enhanced Housing Bonds Rating Methodology" criteria, published Nov. 12, 2019, two were rated under our "Methodology For Rating U.S. Public Finance Rental Housing Bonds" criteria, published April 15, 2020, in conjunction with the "Global Methodology for Rating Interest-Only Securities," criteria, published on April 15, 2020, and the last was rated under our "Methodology For Rating U.S. Public Finance Mortgage Revenue Bond Programs" criteria, published Oct. 10, 2022. See table 4 for the list of new issues rated in second-quarter 2023.
Table 1
Positive rating actions--second-quarter 2023 | |||||||
---|---|---|---|---|---|---|---|
ASID display name | State | Sector | Prior rating | Current rating | Prior outlook | Current outlook | Reason for rating |
Century Hsg Corp, CA General Obligation ICR | CA | CDFI ICR | AA- | AA | Stable | Stable | Improved capital adequacy, profitability, financial ratios and strategic initiatives in recent years |
District of Columbia Hsg Fin Agy, DC General Obligation ICR | DC | HFA ICR | A+ | AA- | Positive | Stable | Improved financial metrics |
Illinois Hsg Dev Auth, IL General Obligation ICR | IL | HFA ICR | AA- | AA | Positive | Stable | Improved financial ratios and very strong and stable management |
Nebraska Invest Fin Auth, NE SFHRB Resolution | NE | MRBP | AA+ | AAA | Stable | Stable | Demonstration of ability to withstand projected losses at the 'AAA' level and meet all other requirements to be rated above the sovereign |
Wisconsin Hsg & Econ Dev Auth, WI Home Ownership Revenue Bonds (1987 Resolution) w GO | WI | MRBP | AA | AA+ | Stable | Stable | MRBP criteria implementation |
Fort Huachuca-YPG Arizona comntys LLC, AZ Military Housing | AZ | RHB - Military | BBB+ | A- | Stable | Stable | Improved coverage in recent years |
Vacaville Redev Agy, CA Affordable Housing 2000A Vacaville Comnty Hsg | CA | RHB - Unenhanced | A | A+ | Stable | Stable | Improved coverage coupled with strong occupancy |
Bridge Hsg, CA General Obligation ICR | CA | Social Housing Provider ICR | A+ | AA- | Stable | Stable | Improved financial performance and debt profile |
Table 2
Negative rating actions--second quarter 2023 | |||||||
---|---|---|---|---|---|---|---|
Issue | State | Sector | Prior rating | Current rating | Prior outlook | Outlook | Reason for rating |
Meridian Hsg Auth, MS HUD Capital Fund Financing | MS | HUD Capital Fund Financing Program (CFFP) | AA- | A+ | NM | Stable | Much-weaker coverage after the issuance of the series 2023 bonds |
New Jersey Housing & Mortgage Finance Agency NJ Multifamily Insured Section 221(d)3 1st LIEN Presidential Plaza at Newport | NJ | FEH Multi-Family Stand-Alone | A+ | A+ | Positive | Stable | Rating dependency on the JP Morgan Chase Bank - GIC provider - whose outlook was revised to stable from positive |
Greater Cincinnati Elderly Hsg Dev Corp OH Multifamily Section 221(d)4 1st LIEN Cambridge Arms II Apts | OH | FEH Multi-Family Stand-Alone | A+ | A+ | Positive | Stable | Rating dependency on the JP Morgan Chase Bank - GIC provider - whose outlook was revised to stable from positive |
Great Lakes Senior Communities IL Affordable Housing Great Lakes Senior Living Communities Third Tier | IL | RHB - Age Restricted | CCC+ | CCC- | Negative | Negative | The borrower's projected shortfall in funds available for debt service on the next interest payment date, likely requiring a draw on debt service reserve funds to make full and timely payment |
Great Lakes Senior Communities IL Affordable Housing Great Lakes Senior Living Communities SecondTier | IL | RHB - Age Restricted | CCC+ | CCC- | Negative | Negative | The borrower's projected shortfall in funds available for debt service on the next interest payment date, likely requiring a draw on debt service reserve funds to make full and timely payment |
Great Lakes Senior Communities IL Affordable Housing Great Lakes Senior Living Communities First Tier | IL | RHB - Age Restricted | CCC+ | CCC- | Negative | Negative | The borrower's projected shortfall in funds available for debt service on the next interest payment date, likely requiring a draw on debt service reserve funds to make full and timely payment |
Foundation for Affordable Housing, Inc, CA Section 8 Affordable Housing Citrus Grove and East Winds Apartments | CA | RHB - Section 8 | BB+ | BB | Stable | Stable | Very weak coverage and liquidity reserves assessment |
Tulsa Pythian Manor, Inc., GA Section 8 Affordable Housing Pythian Manor Apts | GA | RHB - Section 8 | BBB | BBB- | Stable | Stable | Weaker coverage within the past two years and expectation that it will likely remain below rating threshold within the next year |
Fall River Hsg Auth, MA General Obligation ICR | MA | Social Housing Provider ICR | BBB+ | BBB | Stable | Negative | Weakened view of management and governance and the heightened risk to creditworthiness |
Table 3
Affirmations and new sales--second quarter 2023 | |||||
---|---|---|---|---|---|
Issue | State | Sector | Rating | Outlook | Type of review |
Sunquest Properties, Inc., LA FNMA Standby Agreement Peppermill I & II Apts | LA | FEH Multi-Family Stand-Alone | BB | Stable | Full review |
Salem Heights II Preservation Associates LP, MA Salem Heights Apartments | MA | FEH Multi-Family Stand-Alone | AA+ | Stable | Full review |
EMLI Pecan TC I LP, TX Multifamily Tax-Exempt Mortgage-Backed Bonds Series 2020 | TX | FEH Multi-Family Stand-Alone | AA+ | Stable | Full review |
Laredo Hsg Fin Corp, TX Single Family Multi-Agency MBS 1994 Indenture | TX | FEH Single-Family Stand-Alone | CC | Stable | Full review |
Low Income Investment Fund, CA General Obligation | CA | CDFI ICR | A | Stable | Full review |
Kentucky Hsg Corp, KY General Obligation ICR | KY | HFA ICR | AA | Stable | Full review |
Rhode Island Hsg & Mtg Fin Corp, RI General Obligation ICR | RI | HFA ICR | AA- | Stable | Full review |
Alaska Hsg Fin Corp, AK 1999 Resolution: Veterans Mortgage Program | AK | MRBP | AAA | Stable | New sale |
Colorado Hsg & Fin Auth, CO Single Family Mortgage Bonds Class III (GO) | CO | MRBP | AA | Stable | New sale |
Colorado Hsg & Fin Auth, CO Single Family Mortgage Bonds Class III (GO) | CO | MRBP | AA | Stable | New sale |
Colorado Hsg & Fin Auth, CO Single Family Mortgage Bonds Class II | CO | MRBP | AA+ | Stable | New sale |
Colorado Hsg & Fin Auth, CO Single Family Mortgage Bonds Class II | CO | MRBP | AA+ | Stable | New sale |
Colorado Hsg & Fin Auth, CO Single Family Whole Loan - Single Family Mortgage Bonds Indenture | CO | MRBP | AAA | Stable | New sale |
Colorado Hsg & Fin Auth, CO Single Family Whole Loan - Single Family Mortgage Bonds Indenture | CO | MRBP | AAA | Stable | New sale |
Colorado Hsg & Fin Auth, CO Multi-Family Whole Loans - Multifamily Master Indenture | CO | MRBP | AAA | Stable | New sale |
Colorado Hsg & Fin Auth, CO Multi-Family Whole Loans - Multifamily Master Indenture | CO | MRBP | AAA | Stable | New sale |
Colorado Hsg & Fin Auth, CO Multi-Family Whole Loans - Multifamily Master Indenture 2nd Lien | CO | MRBP | AA+ | Stable | New sale |
Colorado Hsg & Fin Auth, CO Multi-Family Whole Loans - Multifamily Master Indenture 2nd Lien | CO | MRBP | AA+ | Stable | New sale |
Connecticut Hsg Fin Auth, CT Multi-Family FHA Insured - 2009 NIBP Indenture | CT | MRBP | AA+ | Stable | Full review |
District of Columbia Hsg Fin Agy, DC Single Family Multi-Agency MBS 1988 Resolution | DC | MRBP | AA+ | Stable | Full review |
Illinois Hsg Dev Auth, IL MF Housing Bond Resolution | IL | MRBP | AA+ | Stable | Full review |
Iowa Fin Auth, IA MBS 1991 SFMBS Resolution | IA | MRBP | AAA | Stable | New sale |
Maine St Hsg Auth, ME Mortgage Purchase Program Resolution | ME | MRBP | AA+ | Stable | New sale |
Michigan State Housing Development Authority, MI Rental Housing General Resolution | MI | MRBP | AA+ | Stable | New sale |
Minnesota Hsg Fin Agy, MN Rental Housing Bond Resolution | MN | MRBP | AAA | Stable | New sale |
Minnesota Hsg Fin Agy, MN Rental Housing Bond Resolution | MN | MRBP | AAA | Stable | New sale |
Minnesota Housing Finance Agency, MN Single Family | MN | MRBP | AA+ | Stable | New sale |
Minnesota Housing Finance Agency, MN Single Family | MN | MRBP | AA+ | Stable | New sale |
Missouri Hsg Dev Comm, MO First Place Homeownership Loan Program | MO | MRBP | AA+ | Stable | New sale |
Montana Brd of Hsg MT, SF I Indenture | MT | MRBP | AA+ | Stable | New sale |
Nevada Hsg Div, NV Single Family Multi-Agency MBS 2008 MBS Resolution | NV | MRBP | AA+ | Stable | New sale |
New Jersey Hsg & Mtg Fin Agy, NJ Single Family Whole Loan - Homeownsherip Mortgage Bond Resolution | NJ | MRBP | AA | Stable | New sale |
New Jersey Hsg & Mtg Fin Agy, NJ Multi-Family Whole Loans - 2004 Resolution | NJ | MRBP | AA- | Stable | New sale |
New Mexico Mtg Fin Auth, NM 2005 Single Family Program General Indenture | NM | MRBP | AA+ | Stable | Full review |
New Mexico Mtg Fin Auth, NM 2005 Single Family Program General Indenture | NM | MRBP | AA+ | Stable | Full review |
New York City Hsg Dev Corp, NY Multi-Family Whole Loans - Multifamily General Resolution | NY | MRBP | AA+ | Stable | New sale |
North Carolina Hsg Fin Agy, NC Single Family MBS Whole Loan - 1998 Trust Agreement | NC | MRBP | AA+ | Stable | New sale |
Pennsylvania Hsg Fin Agy, PA Single Family Mortgage Revenue Bonds w GO | PA | MRBP | AA+ | Stable | New sale |
Tennessee Hsg Dev Agy, TN Single Family Whole Loan - 2013 General Residential Finance Program | TN | MRBP | AA+ | Stable | New sale |
Texas Dept of Hsg & Comnty Affairs, TX Single Family Multi-Agency MBS and Whole Loans 1980 Indenture | TX | MRBP | AA+ | Stable | New sale |
Texas Dept of Hsg & Comnty Affairs, TX Single Family Multi-Agency MBS and Whole Loans 1980 Indenture 2nd Lien | TX | MRBP | AA+ | Stable | New sale |
Utah Hsg Corp., UT Single Family Multi-Agency MBS TEMS | UT | MRBP | AA+ | Stable | New sale |
Utah Hsg Corp., UT Single Family Multi-Agency MBS TEMS | UT | MRBP | AA+ | Stable | New sale |
Utah Hsg Corp., UT Single Family Multi-Agency MBS TEMS | UT | MRBP | AA+ | Stable | New sale |
Virginia Housing Development Authority VA Rental Housing Bonds w GO | VA | MRBP | AA+ | Stable | New sale |
Virginia Housing Development Authority VA Rental Housing Bonds w GO | VA | MRBP | AA+ | Stable | New sale |
West Virginia Hsg Dev Fd, WV Housing Finance Bond w GO | WV | MRBP | AAA | Stable | New sale |
West Virginia Hsg Dev Fd, WV Housing Finance Bond w GO | WV | MRBP | AAA | Stable | New sale |
Wisconsin Hsg & Econ Dev Auth, WI Home Ownership Revenue Bonds (1988 Resolution) w GO | WI | MRBP | AA+ | Stable | Full review |
Wisconsin Hsg & Econ Dev Auth, WI 1974 HRB Indenture | WI | MRBP | AA+ | Stable | New sale |
Wisconsin Hsg & Econ Dev Auth, WI Home Ownership Mortgage Revenue Bonds (NIBP) | WI | MRBP | AA+ | Stable | Full review |
BSLC II, CO Bethesda Senior Living Communities Affordable Housing Bethesda Portfolio Project 2nd Lien | CO | RHB - Aged Restricted | BB+ | Negative | Full review |
BSLC II, CO Bethesda Senior Living Communities Affordable Housing Bethesda Portfolio Project | CO | RHB - Aged Restricted | BBB- | Negative | Full review |
Army Hawaii Fam Hsg Tr, HI Military Housing | HI | RHB - Military | AA | Stable | Event driven review |
Island Palm Communities LLC, HI Military Housing Army Hawaii | HI | RHB - Military | AA | Stable | Event driven review |
Island Palm Communities LLC, HI Military Housing Army Hawaii 2nd Lien | HI | RHB - Military | AA- | Stable | Event driven review |
Island Palm Communities LLC, HI Military Housing Army Hawaii 3rd Lien | HI | RHB - Military | A+ | Stable | Event driven review |
Fort Hamilton Housing, LLC NY Military Housing Fort Hamilton 2nd Lien | NY | RHB - Military | BBB+ | Stable | Full review |
Fort Hamilton Housing, LLC NY Military Housing Fort Hamilton | NY | RHB - Military | A | Stable | Full review |
Atlantic Marine Corps Communities LLC, NC Military Housing | NC | RHB - Military | A- | Stable | Full review |
Atlantic Marine Corps Communities LLC, NC Military Housing 2nd Lien | NC | RHB - Military | BBB | Stable | Full review |
Atlantic Marine Corps Communities LLC, NC Military Housing 3rd Lien | NC | RHB - Military | BBB | Stable | Full review |
Tri Command Military Hsg LLC, SC Military Housing Beaufort/Parris Island Marine Corps | SC | RHB - Military | B+ | Stable | Full review |
Linc Hsg, CA Affordable Housing 2007 Franciscan MHP 2nd Lien | CA | RHB - Mobile Homes | A- | Stable | Full review |
Linc Hsg, CA Affordable Housing 2007 Franciscan MHP | CA | RHB - Mobile Homes | A+ | Stable | Full review |
RHA Affordable Hsg II, Inc., GA Section 8 Affordable Housing Winston Summit & Columbia Meadows Apts | GA | RHB - Section 8 | BB- | Stable | Full review |
Denver Housing Authority CO General Obligation ICR | CO | Social Housing Provider ICR | aa- | Stable | New sale |
Seattle Housing Authority, WA General Obligation | WA | Social Housing Provider ICR | aa | Stable | New sale |
Milwaukee Hsg Auth, WI General Obligation ICR | WI | Social Housing Provider ICR | A+ | Stable | Full review |
Table 4
New issuers--second-quarter 2023 | |||||
---|---|---|---|---|---|
Issue | State | Sector | Rating | Outlook | Type of review |
Freddie Mac, VA Multiple Family Multi-Agency Series ML-16 | VA | FEH multifamily pass-through transactions | AA+ | Stable | New sale |
Freddie Mac, VA Multiple Family Multi-Agency Series ML-15 | VA | FEH single-family pass-through transactions | AA+ | Stable | New sale |
California Housing Finance Agency CA Affordable Housing Securitization Pool Series 2023-1 | CA | RHB Multifamily Static Pool | BBB | Stable | New sale |
California Housing Finance Agency CA, Series 2023-1 Series X Interest Only | CA | Interest Only | BBB | Stable | New sale |
California Housing Finance Agency, CA Multi-Family Mortgage Revenue Bond Program | CA | MRBP | AA | Stable | New sale |
Analyses associated with positive rating actions
- Century Housing Corp., California, June 16, 2023
- District of Columbia Housing Finance Agency, April 22, 2023
- Illinois Housing Development Authority, June 6, 2023
- Nebraska Investment Finance Authority, April 27, 2023
- Wisconsin Housing and Economic Development Authority, April 8, 2023
- Fort Huachuca-Yuma Proving Ground Arizona Communities LLC; Military Housing, June 29, 2023
- Vacaville Redevelopment Agency, California, June 2, 2023
- BRIDGE Housing Corp., California, June 6, 2023
Analyses associated with negative rating actions
- Meridian Housing Authority, Mississippi; Capital Fund Financing Program, May 16, 2023
- Greater Cincinnati Elderly Housing Development Corp., Ohio/New Jersey Housing & Mortgage Finance Agency, April 22, 2023
- Arizona Industrial Development Authority Great Lakes Senior Living Communities LLC, June 30, 2023
- Citrus Grove & East Winds Apartments, FL 2014A Housing Revenue Bond Rating Cut One Notch To 'BB' On Weaker Finances, June 9, 2023
- Tulsa County Industrial Authority, Oklahoma Tulsa Pythian Manor Inc., Georgia, April 18, 2023
- Fall River Housing Authority, Massachusetts, April 27, 2023
Related Research
- U.S. Rental Housing Sector Rating Actions Decline As Finances Stabilize For Most Properties, June 21, 2023
- U.S. Social Housing Providers: Unprecedented Federal Pandemic Support And Beyond, Nov. 17, 2022
- U.S. Housing Finance Agency Programs Have The Resilience To Navigate The Uncertain Economic Landscape, Oct. 20, 2022
- U.S. Housing Finance Agency Issuer Credit Ratings Build Strength Ahead Of New Challenges, Oct. 12, 2022
This report does not constitute a rating action.
Primary Credit Analyst: | Shirley Murillo, New York (646) 831-2467; shirley.murillo@spglobal.com |
Secondary Contact: | Marian Zucker, New York + 1 (212) 438 2150; marian.zucker@spglobal.com |
Research Assistant: | Yogesh Dike, Pune |
No content (including ratings, credit-related analyses and data, valuations, model, software, or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced, or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor’s Financial Services LLC or its affiliates (collectively, S&P). The Content shall not be used for any unlawful or unauthorized purposes. S&P and any third-party providers, as well as their directors, officers, shareholders, employees, or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness, or availability of the Content. S&P Parties are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, for the results obtained from the use of the Content, or for the security or maintenance of any data input by the user. The Content is provided on an “as is” basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT’S FUNCTIONING WILL BE UNINTERRUPTED, OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs or losses caused by negligence) in connection with any use of the Content even if advised of the possibility of such damages.
Credit-related and other analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. S&P’s opinions, analyses, and rating acknowledgment decisions (described below) are not recommendations to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security. S&P assumes no obligation to update the Content following publication in any form or format. The Content should not be relied on and is not a substitute for the skill, judgment, and experience of the user, its management, employees, advisors, and/or clients when making investment and other business decisions. S&P does not act as a fiduciary or an investment advisor except where registered as such. While S&P has obtained information from sources it believes to be reliable, S&P does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives. Rating-related publications may be published for a variety of reasons that are not necessarily dependent on action by rating committees, including, but not limited to, the publication of a periodic update on a credit rating and related analyses.
To the extent that regulatory authorities allow a rating agency to acknowledge in one jurisdiction a rating issued in another jurisdiction for certain regulatory purposes, S&P reserves the right to assign, withdraw, or suspend such acknowledgement at any time and in its sole discretion. S&P Parties disclaim any duty whatsoever arising out of the assignment, withdrawal, or suspension of an acknowledgment as well as any liability for any damage alleged to have been suffered on account thereof.
S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of S&P may have information that is not available to other S&P business units. S&P has established policies and procedures to maintain the confidentiality of certain nonpublic information received in connection with each analytical process.
S&P may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P reserves the right to disseminate its opinions and analyses. S&P's public ratings and analyses are made available on its Web sites, www.spglobal.com/ratings (free of charge), and www.ratingsdirect.com (subscription), and may be distributed through other means, including via S&P publications and third-party redistributors. Additional information about our ratings fees is available at www.spglobal.com/usratingsfees.