Orange County Housing Finance Authority, FL Various Bond Ratings Affirmed, Removed From CreditWatch

Stocks and Financial Services Press Releases Friday March 2, 2018 08:44
SAN FRANCISCO--2 Mar--S&P Global Ratings

SAN FRANCISCO (S&P Global Ratings) March 1, 2018--S&P Global Ratings affirmed its 'A+' rating on Orange County Housing Finance Authority, Fla.'s (Housing and Neighborhood Development Services Inc. project) series 1995A multifamily housing revenue bonds, and its 'A-' rating on the authority's (Green Gables Apartments project) series 1998C multifamily housing revenue bonds. S&P Global Ratings also removed the ratings on the bonds from CreditWatch with negative implications, where they had been placed on Nov. 30, 2017, due to a lack of timely information from the issuer. The rating outlook on the 1995A bonds is stable, and the outlook on the 1998C bond rating is positive.

"The rating actions reflect the receipt of timely information of satisfactory quality to maintain our ratings on the bonds," said S&P Global Ratings credit analyst Jose Cruz.
The ratings reflect our view of:
  • The projects' very strong financial performance, as indicated by a very strong three-year average debt service coverage (DSC) of 1.59x maximum annual debt service (MADS) on the 1995A bonds and 2.10x MADS on the series 1998C bonds;
  • Loss coverage levels that we view as extremely strong, based on extremely low loan-to-value ratios;
  • The projects' strong economic fundamentals and market dependencies, reflecting the extremely high demand for the projects due to their relative affordability, their desirable location in Orlando, and the strength of the local housing market; and
  • The authority's strong operating performance, as evidenced by its high occupancy levels.

The bonds are secured by the revenues of the combined project, which consists of 364 units distributed in six apartment complexes (Green Gables, Delaney Apartments, Anderson Oaks, Mendel Villas, Pebble Creek, and Lancaster Villas), all located in Orlando.

The stable outlook on the 1995A bonds reflects our opinion of the project's good operating performance, demonstrated by its strong coverage levels on the bonds, as well as the demand for its housing units and its consistently high occupancy level. Sustained improvement in the project's operating performance may enhance the credit quality of the issue. Conversely, any significant drop in DSC due to a continued increase in expenses without an offsetting increase in income may lead to a negative rating change.

The positive outlook on the 1998C bonds reflects our view of continuous improvements in the project's financial performance. If the project continues to demonstrate consistently strong operating performance, we could consider raising the rating on the 1998C bonds. Conversely, should expenses exceed expectations, and should net operating income drop to levels that result in three-year average DSC below 1.50x, a negative rating action could be warranted.

Certain terms used in this report, particularly certain adjectives used to express our view on rating relevant factors, have specific meanings ascribed to them in our criteria, and should therefore be read in conjunction with such criteria. Please see Ratings Criteria at for further information. Complete ratings information is available to subscribers of RatingsDirect at All ratings affected by this rating action can be found on the S&P Global Ratings' public website at Use the Ratings search box located in the left column.

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