(WXYZ) — Moody's Investment Services has once again upgraded the City of Detroit's credit rating, officials announced on Monday.
The credit rating increase is the 11th consecutive increase, Detroit Mayor Mike Duggan said. Now, the City of Detroit has upgraded to a rating of Baa1.
In June 2013 after the city declared bankruptcy, the city said its credit rating was Caa3, which was considered "junk bond" status.
“Detroit (Baa1 positive) has bolstered its financial resiliency over the past several years and the city's resurgence will likely continue. The city has a track record of solid operating performance, in large part because of its strong governance practices and it maintains robust reserves and low leverage, all of which will help it to weather the adverse effects of an economic slowdown, should one occur. While recent trade uncertainty is negative for the auto sector, the city’s resurgence is unlikely to be materially derailed given the pipeline of major projects that are planned and in construction," Moody's said in its credit statement.
“This is what happens when elected leaders set aside us-versus-them politics and work together,” Duggan added 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.”
According to the city, the Moody's report indicated future confidence in Detroit's growth for a variety of reasons. Those include the city's tax base doubling, ongoing development and residential values increasing.
“Receiving this waiver is one more indication of the City’s strong financial management practices and a validation that the FRC, like Moody’s, expects them to continue,” said Stoudemire.
