The upgrade of Connecticut Health&Educational Facilities Authority's bonds is based on the upgrade of the state of Connecticut's GO bonds to 'AA' from 'AA-'. The rating reflects the security provided by the special capital reserve fund (SCRF). SCRF is the ultimate layer of security and will only be accessed if revenues from a nursing home, a mortgage on its real property, and an intercept of state Medicaid payments 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
