The 'A+' long-term rating assigned to Michigan Finance Authority's series 2011A local government loan program revenue bonds (school program bonds) and on the authority's various series of existing 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 state school aid of the participating districts in the event of a payment shortfall; and Constitutional commitment of the state for education funding. Securing the bonds is the repayment of loans made by the authority to four participating school districts, with each loan secured by a pledge of state aid payments to be received by participating districts. The authority has pledged its rights under the municipal obligations,
