Summary: Michigan State Housing Development Authority; General Obligation; Multifamily Whole Loan

S&P Global Ratings assigned its 'AA' long-term rating to the Michigan State Housing Development Authority's (MSHDA) series 2019A-1 and 2019A-2 rental housing revenue bonds. At the same time, we affirmed our 'AA' long-term rating and underlying rating (SPUR) and our 'AA/A-1' and 'AA/A-1+' dual ratings on all debt outstanding under the authority's rental housing revenue bonds resolution, which is supported by MSHDA's general obligation (GO) pledge. The outlook is stable. The 'AA' long-term rating reflects our view of MSHDA's: Strong equity base and profitability; 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

...S&P Global Ratings assigned its '##' long-term rating to the Michigan State Housing Development Authority's (MSHDA) series 2019A-1 and 2019A-2 rental housing revenue bonds. At the same time, we affirmed our '##' long-term rating and underlying rating (SPUR) and our '##/A-1' and '##/A-1+' dual ratings on all debt outstanding under the authority's rental housing revenue bonds resolution, which is supported by MSHDA's general obligation (GO) pledge. The outlook is stable. The '##' long-term rating reflects our view of MSHDA's: + Strong equity base and profitability; + 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 view, are the authority's: + Significant variable-rate debt exposure; and + Moderate- to high-risk multifamily loan portfolio, primarily consisting of unsubsidized and...

Summary