S&P Global Ratings affirmed its 'AA' issuer credit rating (ICR) on the Michigan State Housing Development Authority (MSHDA), as well as its ratings on all debt supported by the authority's general obligation (GO) pledge. The outlook is stable. The ratings and ICR reflect our view of the authority's: Strong equity base and strong profitability; Very strong quality and performance of the authority's asset portfolios; Active management team; and Success in meeting its legislative mandate and maintaining a strong, positive relationship with the state government. Partly offsetting the above strengths, in our opinion, are the authority's weaknesses: Significant percentage of variable-rate debt exposure; and Moderate- to high-risk profile of the multifamily loan portfolio, primarily consisting of unsubsidized and construction-oriented loans. As
