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Rating Action: Moody's assigns MIG 1 to California School Finance Authority, Revenue Notes (ASAP Program), Series 2021A-1, 2021B-1, 2021A-2 & 2021B-2Global Credit Research - 11 Mar 2021New York, March 11, 2021 -- Moody's Investors Service (Moody's) has assigned MIG 1 letter of credit (LOC)-backed ratings to California School Finance Authority, Revenue Notes (ASAP Program), Series 2021A-1 (Federally Taxable), Series 2021B-1 (Federally Taxable), Series 2021A-2 (Federally Taxable) and Series 2021B-2 (Federally Taxable) (collectively the Notes). The Series 2021A-1 and Series 2021B-1 will be supported by direct pay LOCs provided by Citibank, N.A. The Series 2021A-2 and Series 2021B-2 will be supported by direct pay LOCs provided by Royal Bank of Canada.RATINGS RATIONALEThe ratings are based upon (i) the direct pay LOCs provided by the banks; (ii) the structure and legal protections of the transaction, which provide for timely payment of debt service to the noteholders; and (iii) Moody's evaluation of the credit quality of each bank. Moody's current short-term Counterparty Risk (CR) Assessments of Citibank, N. A. and Royal Bank of Canada are P-1(cr).FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS** Not ApplicableFACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS** Moody's downgrades the short-term CR Assessment of the applicable letter of credit bank.The Notes will be issued in a fixed rate with interest payable upon maturity, December 30, 2021. The LOCs are sized for the principal amount of the applicable Series of Notes plus interest calculated at the specified interest rate for such Series of Notes from the closing date to the maturity date of the Notes. The LOCS provide sufficient coverage for the Notes at maturity. The trustee is instructed to draw on the LOC, in accordance with its terms, on the business day prior to the maturity date of the Notes. The expiration date of the LOC is December 30, 2021. The LOC may not be substituted.The principal methodology used in these ratings was Rating Transactions Based on the Credit Substitution Approach: Letter of Credit-backed, Insured and Guaranteed Debts published in May 2017 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1068154. Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.REGULATORY DISCLOSURESFor further specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. Moody's Rating Symbols and Definitions can be found at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004.For ratings issued on a program, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series, category/class of debt, security or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.Moody's general principles for assessing environmental, social and governance (ESG) risks in our credit analysis can be found at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1243406.Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating. Michael J. Loughlin Vice President - Senior Analyst Public Finance Group Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. 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