Standard&Poor's Ratings Services affirmed its 'AA' issuer credit rating (ICR) on Michigan State Housing Development Authority (MSHDA), as well as its ratings on all debt supported by the authority's general obligation (GO) pledge and the State of Michigan's moral obligation pledge. The outlook is stable. The affirmation reflects our view of the authority's credit strengths: The improving financial performance; The strong quality and performance of the authority's asset portfolios; The active management team; and The authority's success in meeting its legislative mandate and maintaining a strong, positive relationship with the state government. These strengths are offset, however, by our opinion of the authority's weaknesses: The significant percentage of variable-rate debt exposure; and The moderate-to-high risk profile of the
