...S&P Global Ratings assigned its '##-' rating to the Michigan Finance Authority's local government loan program revenue refunding bonds (revenue sharing bonds), series 2019A and 2019B, and affirmed its '##-' rating on the authority's existing revenue sharing bonds, all issued for various local governments (LGs). The outlook on all ratings is stable. The '##-' ratings are based on Michigan's distributable state aid (DSA) intercept and advancement statutes, assessed under our State Credit Enhancement (SCE) criteria. Our analysis reflects the benefit each LG receives from strong authority (and state of Michigan) oversight as well as the strength and availability of DSA, which would be diverted to the authority if a LG cannot make its full and timely debt service payment. S&P Global Ratings rates intercept or withholding programs that meet certain requirements at a level one notch off of the state general obligation (GO) rating. Accordingly, if the GO rating (or outlook) on Michigan changes,...
