Standard & Poor’s this week raised its rating on debt issued by three local governments under a Michigan credit-enhancement program for local transportation bonds.
The upgrades reflect strong coverage levels, analysts said.
The agency upgraded bonds issued under the Michigan Transportation Fund for Schoolcraft County to AAA from AA, Delta County to AA-plus from AA, and the Washtenaw County Board of Road Commissioners to AAA from AA.
Standard & Poor’s affirmed AA ratings on five other issuers in the program.
“The ratings reflect the statewide collection of pledged revenues distributed to the city or county and the stable trend of gas and weight tax receipts, combined with strong protections against debt dilution that will contribute to maintaining high debt-service coverage,” analyst Blake Yocom wrote in a release.
Debt issued through the Michigan Transportation Fund is secured by a first-lien pledge of annual gasoline and vehicle-weight taxes received from the state.
