MFA Credit Criteria

Bonds or Notes issued by the Michigan Finance Authority should meet one of the following criteria:

1. Rating provided by a Nationally Recognized Agency; or
2. Offering Document that contains full borrower disclosure and bonds or notes sold in minimum denominations of $100,000; or
3. Letter of credit, bond insurance, or guarantee from an organization with an Investment Grade Rating provided by a Nationally Recognized Agency; or
4. If 1, 2, or 3 above are not met, then bonds or notes may be privately placed with Qualified Institutional Buyers, in minimum denominations of $100,000, which provide an Investor Letter

Definitions

Nationally Recognized Agency
Fitch Ratings, Standard & Poor's Ratings Services, or Moody's Investors Service

Qualified Institutional Buyers
As defined in Rule 144A promulgated by the Securities Exchange Commission under the Securities Act of 1933

Investor Letter
A letter signed by each Qualified Institutional Buyer acknowledging the risks associated with the securities being purchased and a representation of its financial ability to take such risks, its access to information on the securities and its intent to hold the securities for investment purposes. The letter must state that the Qualified Institutional Buyers have not relied on information provided by the Michigan Finance Authority.

The Michigan Finance Authority reserves the right to grant exceptions to the foregoing upon its sole determination.

Adopted: November 20, 2013

Michigan Finance Authority

Austin Building, 1st Floor
430 W. Allegan
Lansing, MI 48922

Phone: 517-335-0994
Fax: 517-241-9509

www.michigan.gov/mfa
TreasMFA@michigan.gov