Three Michigan Finance Authority, Series 2016-1 Ratings Placed On CreditWatch Negative

We reviewed our ratings on Michigan Finance Authority's series 2016-1 notes, an ABS transaction backed by FFELP student loans. We placed the class A-1, A-2, and B notes on CreditWatch with negative implications. The rating actions reflect the reduced liquidity of the transaction caused by the COVID-19 pandemic, which has reduced the likelihood of the class A-1 and A-2 notes being redeemed by their mandatory tender date, upon which event, the class A-1 and A-2 notes' cost of funds would significantly increase. NEW YORK (S&P Global Ratings) March 11, 2021--S&P Global Ratings today placed its ratings on the class A-1, A-2, and B notes from Michigan Finance Authority's series 2016-1 on CreditWatch with negative implications (see list). This is an

...- We reviewed our ratings on Michigan Finance Authority's series 2016-1 notes, an ABS transaction backed by FFELP student loans. - We placed the class A-1, A-2, and B notes on CreditWatch with negative implications. - The rating actions reflect the reduced liquidity of the transaction caused by the COVID-19 pandemic, which has reduced the likelihood of the class A-1 and A-2 notes being redeemed by their mandatory tender date, upon which event, the class A-1 and A-2 notes' cost of funds would significantly increase. NEW YORK (S&P Global Ratings) March 11, 2021--S&P Global Ratings today placed its ratings on the class A-1, A-2, and B notes from Michigan Finance Authority's series 2016-1 on CreditWatch with negative implications (see list). This is an ABS transaction primarily backed by a pool of loans originated through the U.S. Department of Education's (ED) Federal Family Education Loan Program (FFELP). Our review considered the transaction's collateral performance and available liquidity,...

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