Press Release|Public Finance
KBRA Affirms AA- Rating with Stable Outlook for the City of Lansing, MI General Obligation Unlimited Tax Bonds
23 May 2025 | New York
KBRA affirms the long-term rating of AA- with a Stable Outlook for the City of Lansing, MI General Obligation Unlimited Tax Bonds.
Key Credit Considerations
The rating was affirmed because of the following 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
- Federal funding, now exhausted, has provided crucial support for operations since the onset of the COVID-19 pandemic.
- Inability to fully capture property reassessment growth.
- Absence of revenue raising flexibility due to the constraint.
Rating Sensitivities
For Upgrade:
- Sustained budgetary balance without use of non-recurring funds.
- Considerable progress in improving pension funding ratios.
For Downgrade:
- Failure to meet target reserve thresholds.
- Inability to maintain structural budgetary balance.
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