Northwest Wayne News

In a remarkable financial turnaround, Detroit has achieved an investment grade rating with a double-notch upgrade from Standard and Poor’s Global Ratings. This upgrade marks the second such rating increase in less than a month, following a similar upgrade from Moody’s.

S&P upgraded Detroit’s Unlimited Tax General Obligation debt to BBB from BB+ and also raised the Priority-Lien debt rating to A- from BBB. The removal of the "structural imbalance" adjustment by S&P reflects Detroit’s commitment to financial resiliency and robust budgetary management.

Mayor Duggan commended the city's Chief Financial Officers and Deputy CFOs for their hard work and sound financial decisions over the past decade, leading to Detroit's return to investment grade. He stated, “No one in 2014 would have predicted Detroit returning to investment grade with both rating agencies in less than a decade.”

S&P's credit action, following Moody's equivalent upgrade last month, underscores Detroit's strengthened financial position and its ability to sustain balanced operations. They noted that Detroit's economy and finances have significantly improved since exiting bankruptcy, with a marked return to structural balance.

Detroit Chief Financial Officer Jay Rising emphasized the collective effort behind this achievement, stating, “This historic accomplishment belongs not only to the City’s leaders but to all the residents, businesses, philanthropic partners, and other organizations who kept their faith and investment in Detroit.”

The City has exceeded all major expectations outlined in the Plan of Adjustment post-bankruptcy, with notable successes in job growth, property value increase, income tax revenue growth, and the establishment of a substantial General Fund Balance to support legacy pension payments.

Detroit's journey from junk bond status to investment grade reflects a decade of hard work, resilience, and strategic financial management, positioning the city for a stable and prosperous future.