Politics

Moody's Gives Detroit a Great Credit Rating, One Notch Above Chicago

March 25, 2024, 4:22 PM by  Allan Lengel


Mayor Duggan announces the good news (City photo)

Some great financial news.

Moody's Investors Services has upgraded the city of Detroit's credit to an appealing level, investment-grade status, which it had not had since 2009. The improvement comes a decade after its bankruptcy filing and takes it one notch above Chicago.

On its Facebook on Monday, the city posted this: 

Not only did Detroit achieve an investment grade credit rating in just ten years out of bankruptcy, but Moody's Investors Services upgraded us two notches to Baa2 - a rare and exceptional occurrence.

So, what does this mean?

Detroit has EXCELLENT credit! We manage our money well and we pay our debts on time! The City can now approach large investors (pension funds, mutual funds, insurance companies) that only purchase investment-grade bonds, lowering interest rates. This allows the City to reprioritize taxpayer money, investing more in infrastructure improvements, neighborhood revitalization and public services.
With the City's increasing tax base, revenue growth, and strong management, Moody's expects the momentum to continue.



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