LANSING – Michigan’s credit rating remained unchanged as the state prepares to sell some $237 million in general obligation school loan bonds on Wall Street next week. Moody’s Investors Service said this week it is confirming the AA1 rating with a stable outlook the agency gave the state last fall.
In its analysis of the offering, Moody’s said the state continues to manage its relatively low debt load well, and that the state will continue to take action to keep its budget situation in check.
But, the Moody’s analysis also said the state will continue to face near-term fiscal pressure because of the “likelihood of only a mild economic recovery, lagging that of the nation.”
Michigan was downgraded to AA1 by Moody’s from the AAA rating it had earned in 2000 because of the state’s ongoing fiscal difficulties. It was downgraded from a AAA rating by Standard and Poor’s in December.
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