...S&P Global Ratings lowered its issuer credit rating (ICR) on the Michigan State Housing Development Authority (MSHDA, or the authority) one notch to '##-' from '##'. The outlook is stable. The rating action follows multiple years of modest, yet steady thinning of certain key leverage ratios as MSHDA utilized a bonded debt-driven growth strategy under which the expansion of its asset base and debt outstanding outpaced a commensurate strengthening in net assets. As the authority has pursued the robust expansion of its single-family loan portfolio in recent years through regular bond issuances--culminating in a reported single-family mortgage loan balance in 2020 that has grown more than 105% since 2016--total net debt outstanding has markedly increased by 62.6% in the same time. While we believe this growth has been instrumental in the achievement of the authority's mission to deliver quality, affordable housing to the residents of the state of Michigan, the sustained contraction of key leverage...
