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Moody’s
returns
Detroit
to A
category
in
rating
upgrade,
S&P
raise
credit
ratings
amid
fiscal
recovery
Jean
Davis -
Local/State
Tell Us
Detroit
News
Bureau
DETROIT
- The
City of
Detroit
has
received
credit
rating
upgrades
from
both
Moody’s
and S&P
in the
same
week,
with
Moody’s
lifting
the city
back
into the
“A”
category
for the
first
time
since
1999.
The
announcement
says the
upgrades
reflect
Detroit’s
stronger
finances,
reserves,
governance
and
budget
discipline
as the
city
continues
investing
in
neighborhoods
and
economic
growth.
What
changed
Moody’s
raised
Detroit’s
issuer
and
general
obligation
unlimited
tax
rating
to A3
from
Baa1,
while
S&P
increased
the
city’s
unlimited
tax
general
obligation
bond
rating
to BBB+
from
BBB.
Both
agencies
gave
Detroit
a stable
outlook,
citing
solid
operating
performance,
strong
reserves
and
improved
financial
resilience.
Why it
matters
The
release
says the
dual
upgrade
marks
Detroit’s
12th
consecutive
year
with a
rating
increase
and
comes as
the city
continues
its
recovery
from the
2013
bankruptcy.
It also
notes
that
Detroit
returned
to
investment
grade in
2024 and
that the
city’s
bankruptcy
court
oversight
ended
this
week
when the
case was
closed.
Mayor’s
message
Mayor
Mary
Sheffield
said the
rating
gains
show
that
fiscal
discipline
can
coexist
with
investment
in
residents
and
neighborhoods.
CFO
Tanya
Stoudemire
said the
upgrades
show
Detroit
is “not
just
recovering
but
thriving,”
while
emphasizing
balanced
budgets
and
strong
cash
reserves.
City
investments
The
release
highlights
several
projects
tied to
the
city’s
broader
“Rise
Higher”
agenda,
including
sidewalk
repairs,
neighborhood
lighting,
RxKids
funding,
and a
livable
wage for
city
employees.
It also
points
to major
developments
such as
the
University
of
Michigan
Center
for
Innovation,
Henry
Ford
Health’s
Destination:
Grand
project,
and new
downtown
hotels.
Business
and
growth
Detroit
says it
is also
backing
small
business
through
technology,
startup
and
legacy-business
funds,
along
with a
new
retail-attraction
position.
The city
adds
that
population
growth
and
rising
property
values
are
helping
support
the
stronger
credit
picture.
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