Northwest Wayne News

Detroit Mayor Mike Duggan expressed immense pride in the City's financial transformation, as Moody’s Investors Services awarded Detroit a double-notch bond rating upgrade to Baa2, marking its return to investment grade status for the first time since 2009. The Mayor credited this achievement to a decade of hard work and sound financial management by the City’s leadership and staff.

Moody’s highlighted Detroit's remarkable financial performance over the last decade, stating that the upgrade reflects the city's solid operating performance and strong governance practices. The agency also noted that Detroit's tax base valuation has doubled over the past five years, with ongoing development and appreciation of residential values expected to provide further boosts in the future.

Mayor Duggan specifically commended the City’s Chief Financial Officers and Deputy CFOs for their dedication and strategic financial decisions, stating, “It has been 10 years of hard choices and sound financial management by these great leaders.” He also acknowledged the pivotal role played by the Detroit City Council in making sound budget decisions that contributed to the city's success.

Jay Rising, one of the City's officials, expressed optimism about Detroit's future, stating, “That is a strong indication that if we stay on track, Detroit could well see another upgrade in 2025.” Moody’s positive outlook for Detroit's future is supported by the city's resilient financial performance, improving tax base, and solid management practices.

The improved bond rating signifies Detroit's strengthening economy and tax base, with Moody’s noting that the city’s financial ratios are robust after a decade of solid performance. The agency highlighted Detroit's available fund balance ratio, which is on par with higher-rated cities in the single-A and above categories, demonstrating the city's fiscal responsibility and ability to respond to economic challenges.

Moody’s also recognized Detroit's commitment to addressing pension funding risks through the establishment of the Retiree Protection Fund (RPF), which has reached $479 million in assets as of December 2023. The RPF will be utilized to offset pension payments, ensuring structural balance and financial stability for the city.

Looking ahead, Moody’s projected that Detroit's momentum is likely to continue, with increasing tax base and revenue growth supporting the city's strong management practices and fund balance. The positive outlook assigned with the credit rating suggests that Detroit could potentially see further upgrades in the future, as long as it maintains its current financial trajectory.