Michigan; Tax Secured, General Obligation Oct 04
- ID: 1929750
- October 2004
- Region: Michigan
- Standard & Poors
Standard & Poor's Ratings Services assigned its 'AA+/A-1+' rating to Michigan's multi-modal GO bonds series 2004C. The 'AA+' long-term rating is based on the state's full faith and credit pledge and reflects: A deep economic base that continues to slowly diversify away from durables manufacturing, thus reducing the likelihood of future severe economic volatility; A low debt burden; and The relatively solid position of the state's pension liabilities. The state's weakened financial position and its decision not to follow previous statutory provisions that would have ensured a minimal level of reserves limit these strengths. The 'A-1+' short-term component of the rating reflects a standby bond purchase agreement (SBPA) provided by Depfa Bank PLC ('AA-/A-1+'). The initial SBPA shall provide principal...
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Action: New Rating
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