The 'A+' Standard&Poor's underlying rating (SPUR) on New York State Dormitory Authority's outstanding lease revenue bonds series 1998-1 reflects the statutory intercept structure in place securing the bonds. The bonds are secured in the first instance by New York City lease-rental payments to the dormitory authority. The strengths of the intercept structure include: Very broad intercept aid, which extends to state Medicaid funds of the New York City social services district and not just Medicaid funds due to the city; Very strong debt service coverage levels from Medicaid revenues; and The essential nature of the Medicaid program, which is constitutionally based in New York State, thereby ensuring a viable revenue stream available for intercept for the life of
