The 'BB' rating on Illinois Development Finance Authority's Section 8 elderly housing revenue refunding bonds series 1994A (Galesburg Towers project) has been affirmed. The rating continues to reflect the decline in debt service coverage, which was .85x maximum annual debt service as of fiscal year-end 2002. Other rating factors include: Ownership by Galesburg Towers Associates II L.P.; Management by Promex Midwest, AMO; and A Section 8 subsidy, which is coterminous with bond maturity. The latest audited financial results for the fiscal year ended Oct. 31, 2002, indicate that the performance of the property continues to decline with debt service coverage of .85x maximum annual debt service from 1.06x the prior year. The owner verified in January 2003 that the coverage...
Companies mentioned in this report are:
- Illinois Finance Authority
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