The rating on Connecticut Health&Educational Facilities Authority's bonds reflects the security provided by the special capital reserve fund (SCRF) guaranteed by the state of Connecticut. The SCRF is the ultimate layer of security, and will only be accessed if the system's GO pledge of university receipts is insufficient. This reserve fund - required to equal maximum annual debt service -- is funded up front with bond proceeds. If the reserve fund 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 and, thus, Standard&Poor's has historically rated SCRF-enhanced issues on par with
