The 'A+' Standard&Poor's underlying rating (SPUR) on New York State Dormitory Authority's bonds, issued for New York State, is affirmed based on 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
