Michigan Finance Authority 2018A-1 State Aid Revenue Notes Assigned 'A-1+' Short-Term Rating

CHICAGO (S&P Global Ratings) July 26, 2018--S&P Global Ratings assigned its 'A-1+' short-term rating to the Michigan Finance Authority's series 2018A-1 state aid revenue notes. The Authority will use the note proceeds (along with proceeds from its separately issued 2018A-2 state aid notes) to provide state aid anticipation notes (SANs) to up to 159 local school districts. The Authority's notes will be secured by repayments of these local school district SANs. "The 'A-1+' short-term rating represents the strengths of Michigan's state school aid withholding and advancement program, assessed under our State Credit Enhancement Criteria, and application of our Methodology For Linking Long-Term And Short-Term Ratings criteria," said S&P Global Ratings credit analyst John Sauter. The rating moves in tandem with

...CHICAGO (S&P Global Ratings) July 26, 2018--S&P Global Ratings assigned its 'A-1+' short-term rating to the Michigan Finance Authority's series 2018A-1 state aid revenue notes. The Authority will use the note proceeds (along with proceeds from its separately issued 2018A-2 state aid notes) to provide state aid anticipation notes (SANs) to up to 159 local school districts. The Authority's notes will be secured by repayments of these local school district SANs. "The 'A-1+' short-term rating represents the strengths of Michigan's state school aid withholding and advancement program, assessed under our State Credit Enhancement Criteria, and application of our Methodology For Linking Long-Term And Short-Term Ratings criteria," said S&P Global Ratings credit analyst John Sauter. The rating moves in tandem with our view of the state of Michigan's credit quality. Additionally, the rating is based on a weak-link analysis of each school district's loan, as there is no cross-collateralization or step-up...

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