Standard&Poor's Ratings Services reinstated its 'AA' long-term rating on Michigan State Housing Development Authority's fixed-rate multifamily housing revenue bonds series 1988A. The rating is based on the authority's general obligation, which reflects our opinion of the following credit strengths: Very strong trends in financial performance; The strong quality and performance of the authority's asset portfolios; An active management team; and The authority's success in meeting its legislative mandate and maintaining a strong and positive relationship with the state government. These strengths are offset by our opinion of the following weaknesses: Significant decline in profitability; Significant percentage of variable-rate debt exposure; and Moderate-to-high risk profile of the authority's multifamily loan portfolio, primarily consisting of unsubsidized and construction-oriented loans. USPF
