Texas State Affordable Housing Corp. (American Opportunity for Housing) Rating Placed On Watch Neg

NEW YORK, NY--Standard & Poor's Ratings Services placed its 'C' underlying rating (SPUR) on Texas State Affordable Housing Corp.'s (American Opportunity for Housing portfolio) multifamily housing revenue bonds series 2002A bonds on CreditWatch with negative implications.

The trustee, Wells Fargo Bank N.A., informed Standard & Poor's that it drew on the series 2002A debt service reserve fund to make the March 3, 2008, payment on the bonds. After the draw, there was $431,332 left in the series 2002A debt service reserve fund, well below the $3.77 million which is required pursuant to the trust indenture.

Although the bonds will be paid by the bond insurer, it is unlikely that the project will generate enough revenue to make the next debt service payment in September 2008.

The bonds are credit enhanced by MBIA, and will continue to have a 'AAA' rating based on the bond insurance policy, which will remain in place for this issue.

Media Contact: Christopher Mortell , New York, (1) 212-438 3446 christopher_mortell@standardandpoors.com
Analyst Contacts: Renee J Berson, New York (1) 212-438-7966 and Louis F. Louis, New York (1) 212-438-2054