The 'AA+' rating on Anchor Bay School District, Mich.'s bonds reflects the additional security provided by the Michigan State School Bond Loan Fund. Since the fund is an obligation of the state, the guarantee program is rated on par with the state's own GO debt. Security for the bonds is the district's unlimited ad valorem tax pledge. The underlying rating of 'A-' reflects: Strong assessed valuation growth, Stable underlying economy benefiting from Macomb County and Detroit MSA employment opportunities, and Good financial performance. These factors are offset by continuing high debt levels, coupled with substantial capital needs that will likely require future bond issuance. Tax base growth continues to be strong with assessed valuation increasing more than 10% from 1998,
