The 'AA+' rating on the VCBA bonds is based on ultimate access to general assembly appropriations; as such, the bonds are rated one notch below the commonwealth's 'AAA' Issuer Default Rating (IDR).
IDR LINKAGE: The rating on the VCBA bonds is sensitive to changes in the Commonwealth's IDR, to which it is linked.
Proceeds from the current offering will be used to refinance certain outstanding VCBA bonds for debt service savings.
received three minigrants, totaling $5,500, to complete the project.
The VCBA assigns its rights to the notes to the trustee for the bonds.
RATING BASED ON COMMONWEALTH INTERCEPT: The 'AA+' rating, one notch below the Commonwealth of Virginia's 'AAA' Long-Term Issuer Default Rating (IDR), reflects the statutory requirement to intercept available commonwealth appropriations to individual public higher education institutions in the event the institution fails to pay on its obligations to the VCBA.
This provides sufficient time for the intercept mechanism to provide for debt service on the VCBA bonds.
KEY RATING DRIVER: --With respect to the VCBA
bonds, changes in the commonwealth's GO credit rating, upon which this rating is based.