Fitch Downgrades Buckingham Senior Living Community, TX Revs to 'D' from 'CC'.
New York: Fitch Ratings has downgraded to 'D' from 'CC' the bonds issued by the Tarrant County Cultural Education Facilities Finance Corporation on behalf of Buckingham Senior Living Community, Inc. (The Buckingham). The bonds are removed from Rating Watch Negative.
The bonds are secured by a mortgage lien on The Buckingham's property, gross revenue pledge and series-specific debt service reserve funds.
KEY RATING DRIVER
PAYMENT DEFAULT: The downgrade to 'D' from 'CC' reflects The Buckingham's failure to pay principal payments on its bonds that were due on Nov. 15, 2018. While The Buckingham has not made its required monthly payments to the trustee since August 2018, the trustee did make the full interest payment that was due on Nov. 15 from funds that were previously available from the borrower ($2.3 million) and from monies in the debt service reserve accounts ($1.6 million). About $3.8 million remains in the debt service reserve accounts.
There are no meaningful rating sensitivities, as the rating is 'D'.
Located in the Memorial/Tanglewood section of Houston, TX, The Buckingham is a continuing care retirement community that opened in 2005. It currently offers 303 independent living units, 40 assisted living units, 16 memory support units and 92 skilled nursing beds. Total operating revenues amounted to $22.6 million in fiscal 2017 (unaudited Dec. 31 year end).
The Buckingham's parent company and sole corporate member is Senior Quality Lifestyles Corporation (SQLC). SQLC is also the parent company of Edgemere in Dallas (BBB-/Negative), Querencia at Barton Creek (BBB-/Stable), two other retirement communities in Texas and one in Carmel, IN, with a total of approximately 1,900 units. Only The Buckingham is obligated on its indebtedness.
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|Publication:||Daily the Pak Banker (Lahore, Pakistan)|
|Date:||Jan 23, 2019|
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