OVERVIEW We lowered our ratings on 19 classes of bonds issued out of the Michigan Finance Authority's (MFA, formerly MHESLA's) series XVII indenture to 'BBB- (sf)' from 'AA (sf).' At the same time, we removed them from CreditWatch negative. The lowered ratings reflect our view of the trust's private loan collateral composition, which has led to the pool's credit quality deterioration. The lowered ratings also reflect our views regarding the trust's debt structure which currently consists of approximately 85% tax-exempt auction rate securities and the negative carry associated with the trust's large cash position. NEW YORK (Standard&Poor's) July 31, 2012--Standard&Poor's Ratings Services today lowered its ratings on 19 classes of bonds issued out of the Michigan
