Michigan Treasury Department Hopes To Borrow $600 Million Next Week

LANSING – Michigan Department of Treasury officials hope to complete action on a $600 million short-term borrowing to help with state cash flow by next week.

The borrowing was delayed by a month because of instability in the credit markets, although the state has been rated at MIG-1 for the borrowing by Moody’s Investors Services. The MIG-1 rating is one of the highest ratings possible for the notes which will have to be paid back before the end of the 2008-09 fiscal year.

Terry Stanton, spokesperson for the department, said the state hoped to price the borrowing on Thursday. If it is priced that day, the sale of the notes should be completed by November 13, he said.

The state is planning on selling $600 million in short-term notes, a smaller amount than the state has sought in recent years but an amount that will be easier to cover during the year.

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