Fitch Ratings revises its rating on the Fort Jackson Housing LLC's military housing taxable revenue bonds (Fort Jackson, South Carolina) 2008 series A to 'AA-' from 'A'. The 'A' rating was assigned on July 11, 2008 based on the original structure submitted to Fitch; however, the bonds were not sold. Subsequently, Fitch reviewed a revised structure that demonstrates the project achieving a debt service coverage level of 1.35 times (x), which is greater than the original projected coverage of 1.20x.
The rating is based on Fitch's assessment of the rental income derived from military housing allowances, the demand for affordable rental properties for military personnel at Fort Jackson Army base in Columbia, SC, the debt service coverage levels generated by the project, and the legal structure for the bonds which includes a cash-funded debt service reserve fund. The rating also takes into account Fitch's assessment of the base's essentiality and the minimal risk of base closure. The bonds are expected to close on or about Sept. 29, 2008.
