The rating on Connecticut Health and Educational Facilities Authority's bonds reflects the security provided by the special capital reserve fund. The special capital reserve fund is the ultimate layer of security, and will only be accessed if revenues from the nursing home, a mortgage on its real property and an intercept of state Medicaid monies due to the institution are insufficient. This reserve fund'required to equal maximum annual debt service'is funded up front with bond proceeds. If it 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, thus Standard&Poor's has historically rated special
