S&P Global Ratings assigned its 'AA+' long-term rating to the Michigan State Housing Development Authority's (MSHDA's) series 2017AB single-family mortgage revenue bonds. At the same time, S&P Global Ratings affirmed its 'AA+', 'AA+/A-1+', 'AA+/A-1', and 'AA+/A-2' ratings on all parity debt issued under the authority's mortgage revenue bond program. The outlook is stable. The 'AA+' rating reflects our view of: The very strong credit quality of the mortgage loan collateral, consisting primarily of Federal Housing Administration (FHA)-insured and Veterans Administration (VA)-guaranteed loans; The mortgage loans' historical performance, either consistent with or below Mortgage Bankers Assn. (MBA) averages; Sufficient reserves for our forecast loan losses, commensurate with the 'AA' rating category; Very strong cash flow strength, with an opening 118.21% asset-to-liability
