OREANDA-NEWS. S&P Global Ratings assigned its 'AA+' long-term rating to the Michigan State Housing Development Authority's (MSHDA's) series 2016BC 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 and its 'AA+' rating on the authority's single-family homeownership revenue bonds. The outlook is stable.

"The 'AA+' rating reflects our view of such factors as the very strong credit quality of the mortgage loan collateral, the mortgage loans' historical performance, sufficient reserves for our forecast loan losses, and very strong cash flow strength," said S&P Global Ratings credit analyst Alan Bonilla.

The bond proceeds will be used to help originate new single-family loans and potential down payment assistance loans throughout the State of Michigan and to refund bonds from the authority's single-family homeownership revenue bonds indenture.

The stable outlook reflects our view of the authority's strong financial performance, coupled with a significant equity balance that we consider sufficient to maintain the rating despite declining asset-to-liability parity, and potential financial support stemming from the 'AA' GO rating on MSHDA.