The Dormitory Authority of the State of New York adopted new borrowing guidelines for lower-rated credits at its monthly board meeting yesterday. DASNY’s board also gave final approval to $1.43 billion of bonds, mostly on behalf of the state.

Under the old guidelines, a borrower needed to have either an unenhanced rating of A1/A-plus or greater or have credit enhancement such as bond insurance, State of New York Mortgage Agency mortgage insurance, or a letter of credit. DASNY could and did make exceptions for lower-rated and unrated credits, but exceptions won’t be necessary under the new guidelines.

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