CUSIP 59447P4X6

  • ISIN: US59447P4X66
  • Entity Name: Michigan Finance Authority
  • Sector: Municipal Agency
  • Announcement Date: *****
  • Effective Date: *****
  • Issue Date: *****
  • Maturity Date: *****
  • Country of Issuer: *****
  • Region: N.Amer
  • Issue Currency: *****
  • CA Type: Rating Downgrade
  • News: S&P Global Ratings has lowered its long-term rating on Michigan Finance Authority`s Local Government Loan Program bonds (City of Detroit Financial Recovery Income Tax Revenue and Refunding Local Project bonds), series 2014F-1 and F-2, by five notches to `BB+` from `A`. The outlook is stable. The bonds were issued on behalf of the city of Detroit and are secured by a first lien on the city`s municipal income taxes. The downgrade reflects application of our "Priority Lien" criteria (published Oct. 22, 2018, on RatingsDirect), which factors in both the strength and stability of the pledged revenues, as well as the general credit quality of the municipality where taxes are distributed and/or collected (the obligor`s creditworthiness [OC]). The priority-lien rating on the bonds is limited by our view of the Detroit`s creditworthiness (BB-/Stable) and is constrained from going higher unless there is an improvement in the OC. The two-notch distinction reflects our view that the pledged revenues and the flow of funds (under both state law and bond documents) are sufficiently removed from the city`s control so as to substantially mitigate operating risk. Under the bond documents, the city will cause all taxpayers (or employers who withhold taxes) to deposit income taxes with an independent depository bank. The documents also require the city to directly deposit with the depository, on a daily basis, any payments that are remitted directly to it. The depository makes a daily transfer of revenues to an independent trustee who holds collections until monthly deposit requirements are met, before remitting excess revenues each month to the city. The city is permitted to contract with a third party to serve as collection agent, and this agent (currently, the Michigan Department of Treasury [DOT]) is required to transfer all collections to the depository. In the absence of a third-party agent, taxpayers would be directed to make payments directly to the depository and the city would deposit with the depository, on a daily basis, any payments remitted directly to it. For Bond Document please visit
  • Description: *****
  • Bond Document:
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