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

Table 2

Table 3

Table 4

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