Genesee County Board of Road Commissioners, MI, Michigan Transportation Fund Note Rating Lowered To 'A+' From 'AA+'

NEW YORK (S&P Global Ratings) March 13, 2019--S&P Global Ratings lowered its 
long-term rating on Genesee County Board of Road Commissioners (GCRC), Mich.'s 
Michigan Transportation Fund (MTF) series 2009 notes outstanding to 'A+' from 
'AA+'. The outlook is stable. 

The downgrade reflects the application of S&P Global Ratings' "Priority-Lien 
Tax Revenue Debt" criteria, published Oct. 22, 2018, which factors in both the 
strength and stability of the pledged revenue as well as the general credit 
quality of Genesee County (the obligor's creditworthiness or OC). 

The priority-lien rating is constrained by the linkage to the OC. 

"Although the county's overall financial stability is strong, its economic 
indicators do not compare well with those of higher-rated peers," said S&P 
Global Ratings credit analyst Michael Mooney. 

The stable outlook reflects our expectation that, while pledged revenues will 
fluctuate with economic cycles and debt issuance, Michigan's tax base will 
likely continue to provide very strong debt service coverage. We do not expect 
to change the rating within the next two years. However, under our criteria, 
there is a link between the attributes of the priority-lien pledge and the 
general creditworthiness. Therefore, in some cases, movement in the 
priority-lien rating could be dictated or limited by movement in our view of 
Genesee County's general creditworthiness. 

It is our understanding that the GCRC does not have any future debt plans and 
the series 2009 notes will be paid off in 2019. If the GCRC did issue future 
MTF notes, we again would link the county to the issuance and could lower the 
rating if there is a weakening of maximum annual debt service coverage as a 
result of declining gas and weight tax receipts or if the financial profile of 
Genesee County weakens and negatively affects its OC. 

We could raise the rating if the OC of the county improves, specifically the 
economic profile, including wealth and income indicators, which, in our 
opinion, do not favorably compare with those of higher-rated peers. 
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