The 'A+' long-term rating assigned to Michigan Finance Authority's series 2010D school program bonds reflects the authority's: Very strong coverage of maximum annual debt service (MADS) by pledged revenues; Intercept mechanism providing for the intercept of school aid of the participating district in the event of a payment shortfall; and Constitutional commitment of the state for education funding. The authority's school program bonds are secured by the repayment of loans made by the authority to participating school districts, with the loans secured by a pledge of state aid payments to be received by the districts. The authority has pledged its rights under the districts' obligations, and all funds derived from the obligations to secure its school program bonds. The districts'
