© 2022 Michigan State University Board of Trustees
Public Media from Michigan State University
Play Live Radio
Next Up:
0:00
0:00
Available On Air Stations
NewsRoom

Michigan Unemployment Bonds Receive Top Ratings

money_and_graph_401k_flickr_creative_commons_2.jpg
401k
/
flickr Creative Commons

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.
 

News from WKAR will never be behind a paywall. Ever. We need your help to keep our coverage free for everyone. Please consider supporting the news you rely on with a donation today. You can support our journalism for as little as $5. Every contribution, no matter the size, propels our vital coverage. Thank you.