Fitch Rates Michigan State Bldg Authority's $221MM Revs 'A'; Outlook Stable

NEW YORK--(Business Wire)--
Fitch Ratings assigns an 'A' rating to the $221 million state of Michigan State
Building Authority (SBA) 2009 revenue refunding bonds, series I (Facilities
Program). The bonds are expected to be offered through negotiation on July 21.

The 'A' rating on the bonds being offered reflects the state of Michigan's
general creditworthiness, strong legal provisions in the underlying lease
obligations of the state, and overall state support for the SBA. Fitch
downgraded the State of Michigan's general obligation (GO) bond rating to 'A+'
from 'AA-' on July 10, 2009. For more information regarding the state's 'A+' GO
rating, please see the Fitch release titled 'Fitch Downgrades Michigan's State
GOs to 'A+'; Outlook Revised to Stable', available on the Fitch web site at
www.fitchratings.com.

The SBA, created by a 1964 Act, provides financing for state projects, mostly at
colleges and universities. Lease provisions are excellent; the leases' primary
strength is a provision that contractually obligates Michigan to make rental
payments for the entire term of the bonds, subject to appropriation by the state
legislature. The SBA plays a key role in the state's overall capital financing,
with approximately $3.4 billion in bonds outstanding accounting for
approximately 43% of state tax-supported debt, which provides additional comfort
that appropriations will continue. A debt service reserve fund, albeit below
maximum annual debt service, is provided. Proceeds from the 2009 series I bonds
being offered will refinance outstanding debt for budgetary savings.

Fitch's rating definitions and the terms of use of such ratings are available on
the agency's public site, www.fitchratings.com. Published ratings, criteria and
methodologies are available from this site, at all times. Fitch's code of
conduct, confidentiality, conflicts of interest, affiliate firewall, compliance
and other relevant policies and procedures are also available from the 'Code of
Conduct' section of this site.

Fitch Ratings, New York
Kenneth T. Weinstein, +1-212-908-0571
Richard J. Raphael, +1-212-908-0506
Media Relations:
Cindy Stoller, +1-212-908-0526
cindy.stoller@fitchratings.com

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