MOODY'S DOWNGRADES UNDERLYING RATING ON CAPFA CAPITAL CORP. 2000F'S $137 MILLION STUDENT HOUSING REVENUE BONDS (PEGASUS LANDING & PEGASUS POINTE AT UNIVERSITY OF CENTRAL FLORIDA), SENIOR SERIES 2000F-1 TO B1 FROM Baa3

Posted on: May 28, 2010, 2:58 pm

NEW YORK, May 28, 2010 -- Moody's Investors Service has downgraded the rating assigned to approximately $137 million of outstanding CAPFA Capital Corp. 2000F's Student Housing Revenue Bonds (Pegasus Landing & Pegasus Pointe at University of Central Florida), Senior Series 2000F-1 to B1 from Baa3. The B1-rated senior bonds are insured by National Public Finance Guarantee Corporation and also rated Baa1 based on the bond insurance policy. The underlying rating is placed on watchlist for further possible downgrade. The downgrade is driven by recent events related to mold contamination at the properties and the expectation of a sharp decline in project revenue as a result of (i) the disclosure that the Pegasus Landing complex has undergone structural deterioration that resulted in water intrusion and the presence of mold in several of the buildings and (ii) change in the project's affiliation with the University of Central Florida after the University suspended its Referral Letter Agreement for the project...

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