Press Release|Public Finance
KBRA Affirms AA-Rating with Stable Outlook for the City of Lansing, MI General Obligation Unlimited Tax Bonds
24 May 2024 | 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 in Lansing.
Credit Challenges
- Federal funding, now waning, 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 constraints under Michigan’s Headlee Amendment.
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.
To access rating and relevant documents, click here.