Michigan Unemployment Bonds Receive Top Ratings
The three national ratings agencies have awarded their highest scores to bonds Michigan is selling to pay off federal loans used to cover unemployment benefits during the recession when the state's unemployment fund ran dry.
The Treasury Department said Friday in a release that Moody's Investment Service awarded the $2.9 billion bond issue a rating of Aaa. Standard & Poor's Ratings Services and Fitch Ratings each gave it a AAA rating.
Pricing on the bonds is expected to occur June 11.
Gov. Rick Snyder calls it "terrific news." He says it shows Wall Street believes the state is taking the right financial steps.
The bonds will lock in low fixed interest rates, which means lower unemployment insurance assessment rates for Michigan employers.