...S&P Global Ratings affirmed its 'A+' long-term rating on various debt obligations issued by the Michigan Finance Authority, on behalf of local school districts. The outlook is positive. Each of the local school districts' obligations are enhanced by Michigan's state school aid intercept statute, so our rating is based on our State Credit Enhancement criteria. Intercept or withholding enhancements operate on the strength and availability of state aid, which can be diverted to a paying agent if a local government 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 or issuer credit rating (ICR)¡on par with the state appropriation rating¡reflecting the appropriation nature of the intercept or withholding mechanism. Accordingly, if Michigan's GO rating (or outlook) changes, so will the enhancement rating. We note that in our previous...
