Fitch Places Syracuse Industrial Development Agency (NY) PILOT Rev Bonds on Rating Watch Negative
--Approximately $235.7 million, PILOT revenue bonds series 2007A currently rated 'A+';
--Approximately $96.8 million, PILOT revenue bonds (Taxable) series 2007B currently rated 'A+'.
The bonds are secured by Payments in Lieu of Taxes (PILOTS) on the original or 'legacy' Carousel Center (mall) payable to SIDA by the Carousel Center Company LP (the 'Carousel owner') pursuant to a PILOT agreement, and interest earnings on the debt service reserves.
The Rating Watch Negative signals the ratings could be downgraded with possible ratings migration below investment grade following a review of both structural factors and risks associated with single-site commercial mall operations.
Fitch is reviewing its ratings on SIDA's PILOT revenue bonds as part of its ongoing review of ratings on bonds secured by revenues generated from highly concentrated retail or commercial center operations.
The review and any resultant rating changes are expected to occur within the next six months. The ratings will continue to reflect a blend of public finance and commercial mortgage-backed securities (CMBS) criteria.