The rating on Vermont Educational&Health Buildings Financing Agency's bonds reflects the issue's dependence on a Prudential Insurance Co. of America (rated `AA-') investment agreement covering the debt service reserve fund. The rating also reflects: * The strong credit quality of the mortgage note on the underlying Helen Porter Nursing Home project insured by FHA under Section 232; * A strong asset to liability position of 103.89%; * Full and timely payment of debt service on the bonds; and * A fully funded reserve to cover debt service during the assignment process in the event of a mortgage note default. As of the Oct. 10, 1995 report date, the bond structure consists of $75,000 of 6.25% term bonds due
