California Health Facilities Financing Authority

Rating Requirements for Investment Grade Rated Transactions

  • Borrower must obtain an Investment Grade Rating from at least one nationally recognized rating agency on bonds to be issued; BBB-/BBB-/Baa3 or better from S&P/Fitch/Moody's
  • For Variable Rate Bonds that may be converted to Fixed Rate Bonds without further CHFFA action, Indenture provisions shall require confirmation prior to the conversion that an Investment Grade Rating will apply to the bonds following conversion
  • If proposed bonds have more than one rating, the highest rating shall be used to determine compliance except when one of the ratings falls below BBB-/BBB-/Baa3, regardless of the higher rating CHFFA will not treat the requested bonds as having an Investment Grade Rating