The 'SP-1' short-term rating assigned to Michigan Finance Authority's series 2011A-1 and series 2011A-2 state aid revenue notes, issued for Detroit Public Schools, is based on the following credit factors: A pledge of all state aid to be appropriated by the state of Michigan to Detroit Public Schools starting with fiscal 2012; The limited risk, in Standard&Poor's Ratings Services' view, that the state will have substantial delays in state school aid appropriations for its 2012 fiscal year; Intercept of all state aid by the trustee for payment on the notes before having any state aid released to the district, which we consider to be a strong structural feature; The ability of the Michigan state treasurer to advance any
