The rating upgrade on New Jersey Educational Facilities Authority's bonds, issued for New Jersey, reflects: The general creditworthiness of the state; The strong essentiality of funding capital expenditures for county college capital projects; The state's demonstrated commitment, in both the administrative and legislative branches, to repaying its appropriation-backed obligations; and The strong contractual provisions provided in the state contract. The bonds are secured by annually appropriated contract payments made by the state to the authority. The bonds were issued to provide funds to finance the cost of county college capital projects for county colleges in Atlantic, Essex, Hudson, Middlesex, and Passaic counties. The state contract carries an absolute and unconditional payment provision, subject only to the legislative appropriation of sufficient
