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KBRA Affirms AA- Rating with a Stable Outlook for the City of Lansing, MI General Obligation Unlimited Tax Bonds

21 May 2026   |   New York

Contacts

KBRA affirms the long-term rating of AA- with a Stable outlook for the City of Lansing, Michigan's General Obligation Unlimited Tax Bonds.

Key Credit Considerations

Credit Positives

  • Adopted General Fund reserve policy affords operational support in event of economic downturn.
  • Property tax base growth reflects ongoing residential/commercial/industrial investment and development in Lansing.

Credit Challenges

  • Socio-economic factors as measured by per capita income and poverty rate compare unfavorably to national norms.
  • Absence of revenue raising flexibility as the City is near its tax rate limitation and is unable to fully capture property reassessment growth due to state constitutional limitations.

Rating Sensitivities

For Upgrade

  • Enhanced financial flexibility demonstrated by sustained improvement in reserves from growth in recurring revenue sources.
  • Considerable progress in improving pension funding ratios.

For Downgrade:

  • Failure to meet target reserve thresholds.
  • Inability to maintain structural budgetary balance.

To access ratings and relevant documents, click here.

Methodology

Disclosures

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

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