...S&P Global Ratings assigned its '##-' long-term rating to New York City Educational Construction Fund's (ECF) $118.4 million 2021 series B revenue bonds. The outlook is stable. Securing debt service on the bonds are New York City's lease rental payments, which are subject to annual appropriation, and fund income that ECF receives pursuant to leases with respect to nonschool portions of the combined occupancy structures. We rate the bonds one notch lower than New York City's general creditworthiness, as reflected in the city general obligation rating, to account for the appropriation risk associated with the lease payment. We believe the standard lease terms, modest carrying charges for the lease payments, and lack of administrative risks associated with the lease structure also contribute to the rating on the bonds. Furthermore, upon discharge of the obligations associated with the financing paid by the city, the school portion of the land and structures financed with ECF or associated...
