Moody’s Assigns A1 and Negative Outlook to CHEFA

Moody’s Investors Service has assigned an A1 rating to the Connecticut Health and Educational Facilities Authority’s $28.64 million of Series 2011 state-supported child care revenue bonds.

The bonds are limited obligations of CHEFA, payable from loan revenues pledged by participating nonprofit institutions that operate child care centers pursuant to the state’s school-readiness program for pre-school children.

The loan revenues consist of the state treasurer’s commitment to pay 100% of the principal and interest payments, subject to appropriation, as well as payments to the nonprofit providers under state contracts for the child care programs.

The authority expects to sell the bonds the week of July 25.

Proceeds will be loaned to the participating nonprofit institutions to refund outstanding bonds that financed construction and renovation projects.

Net present-value savings of around $2.9 million are expected, representing about 9.7% of the refunded bonds.

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