S&P Lowers Rating on Liberty County Industrial Authority 1992 to 'BB'

Apr 26, 2001, 01:00 ET from Standard & Poor's Ratings Services

    NEW YORK, April 26 /PRNewswire/ -- Standard & Poor's today lowered its
 rating on Liberty County Industrial Authority's commercial property senior
 secured revenue bond series 1992 to double-'B' from single-'A'-minus.
     The lowered rating reflects the continuing loss of tenants, including the
 recent closure by J.C. Penney Co., Inc. of its store at Hinesville Square
 Shopping Center, the collateral property.
     Based upon a recent property visit made by Standard & Poor's, the property
 is in a competitive disadvantage due to its location and lack of drawing
 power. All three of the center's anchors have physically vacated their space.
 Wal-Mart Stores Inc. previously relocated from the center to their own
 developed site about one-half of a mile down the road. Eckerd Drugs is no
 longer occupying its space and has subleased to Freedom TV. J.C. Penny has
 closed down. Both the Wal-Mart and J.C. Penny spaces are dark. The anchors
 contribute approximately 53% of total base rents.
     Although all three of the anchor tenants are obligated under their leases
 to pay rents through 2005 or 2006, their physical absence will likely cause
 several of the shop tenants to vacate their space once their leases expire.
 The most recent departure occurred in March 2001, when Fashion Bug vacated
 8,050 square feet (sq. ft.) of space.
     Hinesville Square Shopping Center is a 155,861 sq. ft. community retail
 center built in 1986 and located in Hinesville, Ga., approximately 30 miles
 southwest of Savannah. The property is positioned in an older section of town
 that has not experienced much new development. New residential and commercial
 development activity is occurring near the Wal-Mart store.
     The center has a 91% economic and 13% physical occupancy. Debt service
 coverage based on net operating income is 1.44 times. The property will be
 subject to significant tenant improvements and leasing commissions as
 management attempts to lease-up the center. Future rating adjustments may be
 necessary dependant upon the effect of their leasing efforts,
 Standard & Poor's said.
 
 

SOURCE Standard & Poor's Ratings Services
    NEW YORK, April 26 /PRNewswire/ -- Standard & Poor's today lowered its
 rating on Liberty County Industrial Authority's commercial property senior
 secured revenue bond series 1992 to double-'B' from single-'A'-minus.
     The lowered rating reflects the continuing loss of tenants, including the
 recent closure by J.C. Penney Co., Inc. of its store at Hinesville Square
 Shopping Center, the collateral property.
     Based upon a recent property visit made by Standard & Poor's, the property
 is in a competitive disadvantage due to its location and lack of drawing
 power. All three of the center's anchors have physically vacated their space.
 Wal-Mart Stores Inc. previously relocated from the center to their own
 developed site about one-half of a mile down the road. Eckerd Drugs is no
 longer occupying its space and has subleased to Freedom TV. J.C. Penny has
 closed down. Both the Wal-Mart and J.C. Penny spaces are dark. The anchors
 contribute approximately 53% of total base rents.
     Although all three of the anchor tenants are obligated under their leases
 to pay rents through 2005 or 2006, their physical absence will likely cause
 several of the shop tenants to vacate their space once their leases expire.
 The most recent departure occurred in March 2001, when Fashion Bug vacated
 8,050 square feet (sq. ft.) of space.
     Hinesville Square Shopping Center is a 155,861 sq. ft. community retail
 center built in 1986 and located in Hinesville, Ga., approximately 30 miles
 southwest of Savannah. The property is positioned in an older section of town
 that has not experienced much new development. New residential and commercial
 development activity is occurring near the Wal-Mart store.
     The center has a 91% economic and 13% physical occupancy. Debt service
 coverage based on net operating income is 1.44 times. The property will be
 subject to significant tenant improvements and leasing commissions as
 management attempts to lease-up the center. Future rating adjustments may be
 necessary dependant upon the effect of their leasing efforts,
 Standard & Poor's said.
 
 SOURCE  Standard & Poor's Ratings Services