The rating on North Carolina Medical Care Commission's series 2001A and taxable series 2001B health care facility revenue bonds reflects: Extremely strong coverage through pledged assets consisting of 'AAA/A-1+' rated investments, GNMA construction loan certificates (CLCs) during the project construction period, and a GNMA permanent loan certificate (PLC) to be delivered upon project completion and final endorsement of the underlying mortgage for FHA insurance; Coverage of all credit and liquidity shortfalls - negative arbitrage, the payment lag on receipt of the GNMA payment, reinvestment risk, and payment of GNMA accrued interest - from bankruptcy-proof funds on deposit with the trustee; and Cash flows demonstrating sufficient investment earnings and mortgage revenues passed-through under the GNMA security to make all scheduled debt
