The 'AA' rating on California Health Facilities Financing Authority's revenue bonds, issued for True to Life Children's Servicesis based on insurance from California's Health Facilities Construction Loan Insurance Program (Cal-Mortgage). Under the Cal-Mortgage program, the bonds are guaranteed by the program's own Health Facilities Construction Loan Insurance Fund (HFCLIF), which is funded by up-front fees from new issuers, interest income on the fund, and from the annual premium charged to borrowers (0.5% of par amount). However, the ultimate backing for the program is the full faith and credit of California. In the event of a shortfall in the HFCLIF, the state can continue to make regularly scheduled debt service payments or issue debentures on par with the state's GO, and
