The 'A+' rating on New York State Housing Finance Agency's bonds is consistent with similarly structured bonds issued through the Dormitory Authority of the State of New York (DASNY). The rating is based on the intercept of state aid to the city. The structure includes: The significant aid subject to intercept, 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 the bonds. The state aid available for intercept
