The rating assigned to Burnsville, Minn.'s bonds reflects an irrevocable direct-pay credit enhancement facility ("facility") provided by Fannie Mae, which supports the mortgage backing the bonds. Fannie Mae is a U.S. government-sponsored agency whose payment ability is assessed 'AAA/A-1+' by Standard&Poor's. The facility, which expires July 20, 2030, provides coverage for principal and up to 35 days of interest at the maximum bond rate of 12%, including the purchase price of tendered bonds. Immediately following a regularly scheduled interest draw on the facility, Fannie Mae's interest commitment will automatically reinstate. The bonds initially will bear interest at a weekly floating rate period, but may be converted upon mandatory tender and rating confirmation to a reset or fixed-rate period.
