Detroit gets another credit rating upgrade B
(Gongwer News Service) — Detroit officials praised the city’s 11th consecutive credit upgrade from Moody’s Investment Services on Monday.
Moody’s upgraded the city to Baa1 with a positive outlook and said the city’s financial health would “enable it to successfully weather the adverse effects of an economic slowdown, should one occur.”
In June 2013, the city’s credit rating bottomed out at Caa3 – which is considered “junk bond” status – as it declared bankruptcy.
“This is what happens when elected leaders set aside us-versus-them politics and work together,” Detroit Mayor Mike Duggan said in a statement. “Our OCFO team, department heads and City Council all have demonstrated tremendous fiscal discipline over the past 11 years to help bring us to where we are today and to lay a strong foundation for years to come.”
Crain’s Detroit Business reported the recent credit upgrade is the city’s highest rating in 26 years.
Last year, Moody’s issued a bond rating increase for the city, marking the first time since 2009 that it had investment grade status.
Additionally, the State Financial Review Commission, created in 2014 as the state approved funds to help the city through bankruptcy, approved a resolution to continue to waive active oversight.
“The outlook is positive because of the growing likelihood that the city will build and maintain its financial resiliency in line with higher rated peers and that its renewed tax base and revenue growth will help absorb any costs pressures,” the report from Moody’s said. “The city’s tax base has more than doubled in the past five years, fueled by ongoing development and recent appreciation of residential values. … Also, the city adheres to strong governance practices that have enabled it to maintain consistently robust reserves over the past decade, even during periods of heightened uncertainty, like the pandemic.”
Moody’s upgraded the city to Baa1 with a positive outlook and said the city’s financial health would “enable it to successfully weather the adverse effects of an economic slowdown, should one occur.”
In June 2013, the city’s credit rating bottomed out at Caa3 – which is considered “junk bond” status – as it declared bankruptcy.
“This is what happens when elected leaders set aside us-versus-them politics and work together,” Detroit Mayor Mike Duggan said in a statement. “Our OCFO team, department heads and City Council all have demonstrated tremendous fiscal discipline over the past 11 years to help bring us to where we are today and to lay a strong foundation for years to come.”
Crain’s Detroit Business reported the recent credit upgrade is the city’s highest rating in 26 years.
Last year, Moody’s issued a bond rating increase for the city, marking the first time since 2009 that it had investment grade status.
Additionally, the State Financial Review Commission, created in 2014 as the state approved funds to help the city through bankruptcy, approved a resolution to continue to waive active oversight.
“The outlook is positive because of the growing likelihood that the city will build and maintain its financial resiliency in line with higher rated peers and that its renewed tax base and revenue growth will help absorb any costs pressures,” the report from Moody’s said. “The city’s tax base has more than doubled in the past five years, fueled by ongoing development and recent appreciation of residential values. … Also, the city adheres to strong governance practices that have enabled it to maintain consistently robust reserves over the past decade, even during periods of heightened uncertainty, like the pandemic.”
Firm presents ‘Automotive Legal Summit 2025’
Dykema will present its “Dykema Drives: Automotive Legal Summit 2025” on Wednesday, July 23, at the M1 Concourse in Pontiac.
This one-day summit for in-house legal professionals and business leaders, will feature legal insights, dynamic panels with OEM and supplier voices, and networking with peers across the auto and mobility industry. The program will explore what’s reshaping the industry and cut through the noise on risks and real strategies,
Attendess will then shift gears and experience the thrill of M1’s exclusive driving attractions.
For additional information on the summit, visit www.dykema.com/DykemaDrivesAutoSummit.html.
This one-day summit for in-house legal professionals and business leaders, will feature legal insights, dynamic panels with OEM and supplier voices, and networking with peers across the auto and mobility industry. The program will explore what’s reshaping the industry and cut through the noise on risks and real strategies,
Attendess will then shift gears and experience the thrill of M1’s exclusive driving attractions.
For additional information on the summit, visit www.dykema.com/DykemaDrivesAutoSummit.html.
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