The rating assigned to Rhode Island Health and Educational Building Corp.'s higher education facility revenue bonds series 2008B, issued for Roger Williams University, is based on the irrevocable, direct-pay letter of credit (LOC) that Bank of America N.A. provides. The rating applies to the bonds when they're in the weekly or monthly interest rate modes (see Structural Overview). The long-term rating reflects the likelihood of repayment of principal and interest to maturity based primarily on Bank of America's credit support. The short-term rating reflects the likelihood of repayment based on the liquidity support that the LOC provides for optional and mandatory tenders. The LOC provides coverage for all principal and interest for 45 days at a maximum rate of 12%
