Standard&Poor's Ratings Services assigned its 'SP-1' short-term rating to Michigan Finance Authority's (as successor to the Michigan Municipal Bond Authority) series 2010E state aid revenue notes, issued for Detroit Public Schools. In our view, the rating is based on the following credit factors: A pledge of all state aid to be appropriated by Michigan to Detroit Public Schools, starting with fiscal 2011; The limited risk, in our view, that Michigan will have substantial delays in state school aid appropriations for its 2011 fiscal year; The intercept of all state aid by the trustee for payment on the notes before having any aid released to the district, which we consider to be a strong structural feature; The ability of
