Fitch Ratings Downgrades Michigan School Bonds

Business Wire, Dec 14, 2004

NEW YORK -- With the downgrade of the rating of Michigan's general obligation bonds, Fitch Ratings also lowers to 'AA' from 'AA ' the ratings of certain school district bonds qualified for participation in the Michigan School Bond Loan Fund Program. As of Dec. 31, 2003, approximately $12.9 billion of such bonds were outstanding. The 'AA' rating reflects Michigan's constitutional and statutory requirements to lend debt service payment funds to school districts that would otherwise default on their qualified general obligation (GO) bonds for any reason. The state constitution prohibits impairment, and the state may issue notes or bonds without voter approval for the purpose of making loans to school districts.

Fitch assigns such ratings upon request. In some cases, the bonds also are insured, and underlying ratings, reflecting school district credit quality, are assigned. These insured and underlying ratings are unaffected by this action.

Accordingly, applicable ratings of the following school district issues qualified for the program are downgraded to 'AA' from 'AA ':

--Armada Area Schools, MI 1995 GO unlimited tax school building and site and refunding bonds;

--Baldwin Community Schools, MI GO unlimited tax school building and site bonds, series 1998;

--Beaverton Rural Schools, MI GO unlimited tax school building and site bonds, series 1996;

--Beaverton Rural Schools, MI 1996 GO unlimited tax school building and site bonds;

--Buchanan Community Schools, MI GO unlimited tax refunding bonds, series 1997;

--Capac Community Schools, MI GO school building and site unlimited tax GO bonds, series 1997;

--Cass City Public Schools, MI 1996 GO unlimited tax school building and site bonds;

--Climax-Scotts Community School District, MI GO unlimited tax refunding bonds, series 1997;

--Detroit School District, MI GO school building and site improvement bonds, series 1998A, 1998B, and 2003B;

--Detroit School District, MI GO school building and site improvement refunding bonds, series 1998C;

--Detroit School District, MI GO unlimited school building and site improvement bonds, series 2001A;

--Detroit School District, MI GO unlimited tax school building and site improvement refunding bonds, series 2003A;

--Engadine Consolidated Schools, MI 1995 GO unlimited tax school building and site bonds;

--Ewen-Trout Creek Consolidated School District, MI 1995 GO unlimited tax school building and site bonds;

--Ewen-Trout Creek Consolidated School District, MI GO unlimited tax school building and site bonds, series 1995;

--Flat Rock Community Schools, MI GO unlimited tax school building and site bonds, series 1995;

--Forest Park School District, MI GO unlimited tax school building and site bonds, series 1997;

--Fruitport Community Schools, MI GO unlimited tax school building and site bonds, series 1997;

--Goodrich Area Schools, MI GO unlimited tax refunding bonds, series 1998A;

--Holt Public Schools, MI 1997 GO unlimited tax refunding bonds;

--Holt Public Schools, MI GO unlimited tax school building and site bonds, series 2000A;

--Houghton-Portage Township School District, MI unlimited tax GO refunding bonds, series 1998;

--Ishpeming Public School District No. 1, MI school building and site unlimited tax GO bonds, series 1997;

--Kenowa Hills Public Schools, MI 1996 GO unlimited tax school building and site bonds;

--Kenowa Hills Public Schools, MI GO unlimited tax school building and site bonds, series 1996;

--Lake Linden-Hubbell Public Schools, MI 1996 GO unlimited tax school building and site bonds;

--Lamphere Schools, MI GO unlimited tax school building and site bonds, series 1997;

--Manton Consolidated Schools, MI 1996 GO unlimited tax school building and site bonds;

--Maple Valley Schools, MI GO unlimited tax school building and site bonds, series 1997;

--Marcellus Community Schools, MI GO unlimited tax school building and site bonds, series 1997;

--McBain Rural Agricultural Schools, MI GO school building and site refunding bonds, series 1997;

--Memphis Community Schools, MI GO unlimited tax school building and site refunding bonds, series 1999;

--Morley-Stanwood Community Schools, MI GO unlimited tax refunding bonds, series 1999;

--Morley-Stanwood Community Schools, MI GO unlimited tax school building and site bonds, series 1995;

--New Haven Community Schools, MI GO unlimited tax school building and site bonds;

--Novi Community School District, MI GO school building and site bonds, series 1998;

--Novi Community School District, MI GO unlimited tax refunding bonds, series 1997;

--Onekama Consolidated Schools, MI GO unlimited tax school building and site bonds, series 1996;

--Pellston Public Schools, MI 1998 GO unlimited tax refunding bonds;

--Pickford Public Schools, MI 1996 GO unlimited tax school building and site bonds;

--Rapid River Schools, MI GO unlimited tax school building and site bonds, series 1999;

--Reeths-Puffer Schools, MI GO unlimited tax refunding bonds, series 1997;

--Reeths-Puffer Schools, MI school building and site refunding GO unlimited tax bonds;

--Rudyard Area Schools, MI GO unlimited tax school building and site bonds, series 1999;