The rating on Maricopa County Industrial Development Authority, Ariz.'s bonds is based on: GNMA construction loan certificates (CLCs) during the construction period and a GNMA permanent loan certificate (PLC) to be delivered upon project completion and final endorsement of the underlying mortgage for FHA insurance; Coverage of all credit and liquidity shortfalls, including negative arbitrage, a 20-day payment lag, reinvestment risk, and payment of GNMA accrued interest; Cash flows demonstrating sufficient investment earnings and mortgage revenue passed-through under the GNMA security to make scheduled debt service payments and pay all required fees and expenses; and 'AAA' rated investments. GNMA-guaranteed MBS (CLCs and PLC) are guaranteed by the full faith and credit of the U.S. government as to timely payment of
