Summary: Michigan State Housing Development Authority; Multifamily Whole Loan; Single Family Whole Loan

S&P Global Ratings revised its outlook on the Michigan State Housing Development Authority's (MSHDA's) single-family mortgage revenue bond program to negative from stable. At the same time, we assigned our 'AA+' long-term rating to the 2021 series A and B single-family mortgage revenue bonds and affirmed all long- and short-term ratings on outstanding parity debt issued under the resolution. The outlook revision follows a deterioration in the single-family mortgage revenue bond resolution's (commonly referred to as the general resolution) asset-to-liability parity on an adjusted basis--which incorporates S&P Global Ratings-calculated losses--culminating in a ratio of 103.1% as of the June 30, 2020, cashflow basis date, and a ratio of 101.6% as of the lowest cashflow parity date. Consequently, we believe it

...S&P Global Ratings revised its outlook on the Michigan State Housing Development Authority's (MSHDA's) single-family mortgage revenue bond program to negative from stable. At the same time, we assigned our '##+' long-term rating to the 2021 series A and B single-family mortgage revenue bonds and affirmed all long- and short-term ratings on outstanding parity debt issued under the resolution. The outlook revision follows a deterioration in the single-family mortgage revenue bond resolution's (commonly referred to as the general resolution) asset-to-liability parity on an adjusted basis--which incorporates S&P Global Ratings-calculated losses--culminating in a ratio of 103.1% as of the June 30, 2020, cashflow basis date, and a ratio of 101.6% as of the lowest cashflow parity date. Consequently, we believe it is possible that the resolution may fail to withstand losses at our '##+' level stress scenario in the near term. The immense bond-financed growth in MSHDA's general resolution in recent...

Summary