OREANDA-NEWS. S&P Global Ratings lowered its rating on New Haven Housing Authority, Conn.'s capital funds housing revenue debt one notch to 'A+' from 'AA-'. The outlook is stable.

"We believe that while modernization funding is still within the parameters for credit support at an investment-grade level on this issue, further long-term, continued appropriation reductions could have an effect on the authority's financial strength," said S&P Global Ratings credit analyst Teresa Galicia.

The stable outlook reflects S&P Global Ratings' opinion of the authority's dependence on continuing stable capital fund appropriations that are sufficient to support the bonds at the 'A+' level. The 2016 congressional appropriation for public housing modernization decreased by 1% since 2015. The expected debt service coverage reflects the authority's fiscal 2016 allocation, followed by an annual 5% compounded reduction in available capital funds due to appropriation risk, as well as an additional 5% cut annually due to potential funding reallocations needed to award high-performer bonuses.