The 'AA' rating on Connecticut Health and Educational Facilities Authority's revenue bonds reflects the security provided by the special capital reserve fund guaranteed by the state. The reserve fund is the ultimate layer of security and will only be accessed if the system's GO pledge of university receipts is insufficient. This reserve fund--required to equal maximum annual debt service--is funded upfront with bond proceeds. If the reserve fund is depleted to pay debt service, funding from the state is deemed to be appropriated to restore the reserve to maximum annual debt service. Appropriation of these funds is not subject to legislative approval; Standard&Poor's Ratings Services therefore has historically rated special capital reserve fund-enhanced issues on par with Connecticut's
