The 'AA' rating on bond issues insured by California Health Facilities Construction Loan Insurance Program ("Cal-Mortgage") reflects the upgrade of California's GO rating. The Cal-Mortgage program, since its inception in 1968, has helped health care facilities in California gain access to the tax-exempt financing markets at borrowing costs comparable to the state's. The bonds are guaranteed by the program's Health Facility Construction Loan Insurance Fund (HFCLIF), but the ultimate backing for the loans is the full faith and credit of the state. The HFCLIF is funded by the 0.5% premium charged to the facilities each year for the amount borrowed from interest income obtained through investment of the fund with the state treasurer and from the up-front fees charged for
