Standard and Poor’s Rating Services recently raised its issuer credit rating (ICR) for the Michigan State Housing Development Authority (MSHDA) from a ‘AA-‘ to a ‘AA’ rating.

The increased credit rating is an honor to the Authority and it’s employees according to Executive Director Michael DeVos.

“This is very significant for us as an agency and for the people we serve,” said DeVos. “This upgrade is a tribute to all staff here at MSHDA.”

MSHDA sells bonds to private investors to finance its multi-family and single-family programs. A higher credit rating qualifies the Authority for better interest rates to sell bonds at lower yields, thereby lowering the interest rate on the loans offered and in turn making the housing it finances more affordable.

According to Standard and Poor’s, the credit rating reflects the Authority’s consistently strong financial performance, healthy loan loss reserve position and very strong portfolio management.

“As one of the first few state housing agencies to receive Standard and Poor’s top-tier status in 1986, MSHDA has consistently demonstrated strong performance in all areas considered for this designation,” a Standard and Poor’s official said.

MSHDA has had a successful track record of providing affordable housing throughout the state. MSHDA’s financial performance has been progressively improving over the last seven years according to DeVos.

“We have been making record money year after year,” said DeVos.

The Michigan State Housing Development Authority is a quasi-state agency that provides financial and technical assistance through public and private partnerships to create and preserve decent, affordable housing for low- and moderate-income Michigan residents. The Authority's loans and operating expenses are financed through the sale of tax-exempt and taxable bonds and notes to private investors, not from state tax revenues. For more information on MSHDA initiatives and programs, visit the Web site at www.michigan.gov/mshda.

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