Eleven Series Of Michigan Finance Authority Bond 'A' Ratings Placed On CreditWatch Developing

CHICAGO (S&P Global Ratings) Dec. 22, 2017--S&P Global Ratings placed its 'A' ratings on 11 series of bonds issued by the Michigan Finance Authority (the authority) on CreditWatch with developing implications. The bonds were issued on behalf of multiple local governments (LGs). The CreditWatch placement follows our determination that certain legal provisions in the governing master indenture applicable to all participating LGs may result in credit implications that differ from what we previously understood. Specifically, we've become aware of provisions in the master indenture that may change our assessment of the performance dependencies between participating LGs. In addition, we are reevaluating the degree to which we believe the strength of each LG obligation is associated with that of the state.

...CHICAGO (S&P Global Ratings) Dec. 22, 2017--S&P Global Ratings placed its 'A' ratings on 11 series of bonds issued by the Michigan Finance Authority (the authority) on CreditWatch with developing implications. The bonds were issued on behalf of multiple local governments (LGs). The CreditWatch placement follows our determination that certain legal provisions in the governing master indenture applicable to all participating LGs may result in credit implications that differ from what we previously understood. Specifically, we've become aware of provisions in the master indenture that may change our assessment of the performance dependencies between participating LGs. In addition, we are reevaluating the degree to which we believe the strength of each LG obligation is associated with that of the state. In prior reviews, we applied our Special Tax criteria and, in certain cases, our State Credit Enhancement criteria to the bonds. During the CreditWatch period, we will review and collect additional...

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