Summary: Michigan Finance Authority; State Revolving Funds/Pools

S&P Global Ratings affirmed its 'AAA' rating on the Michigan Finance Authority's (MFA's) clean water and drinking water revolving fund bonds outstanding. The outlook on all ratings is stable. Security on the bonds is provided primarily through borrower obligation revenue repayments, as well as various reserves and reserve fund earnings. Total clean water debt outstanding is about $800 million and drinking water debt outstanding is about $200 million. The combined programs have about $1.9 billion due from over 300 borrowers. Because we view securitizations backed by pools of public-sector assets as highly sensitive to country risk, the rating on the securitization is capped at two notches above the sovereign. However, no specific sovereign default stress is applied, given the U.S.

...S&P Global Ratings affirmed its '###' rating on the Michigan Finance Authority's (MFA's) clean water and drinking water revolving fund bonds outstanding. The outlook on all ratings is stable. Security on the bonds is provided primarily through borrower obligation revenue repayments, as well as various reserves and reserve fund earnings. Total clean water debt outstanding is about $800 million and drinking water debt outstanding is about $200 million. The combined programs have about $1.9 billion due from over 300 borrowers. Because we view securitizations backed by pools of public-sector assets as highly sensitive to country risk, the rating on the securitization is capped at two notches above the sovereign. However, no specific sovereign default stress is applied, given the U.S. sovereign rating is '##+'....

Summary