DETROIT, – Detroit earned an upgrade in credit rating from S&P Global and Moody’s Ratings, Moody’s returning the City’s rating to the “A” category.
Moody measures the City’s Issuer and General Obligation Unlimited Tax (GOULT) and S&P measures Detroit’s Unlimited Tax General Obligation (UTGO) bond.
Recommended Videos
Before Moody rated Detroit as Baa1, now moody raises its rating to A3.
S&P raises it’s rating for the city from BBB to BBB+, one step before “A”.
Moody’s rating brings the city to an “A” for the first time since 1999.
This is Detroit’s 12th consecutive year with an upgrade.
During the city’s 2013 bankruptcy, Detroit’s credit rating had fallen to junk bond status.
In 2024 Detroit returned to investment grade.
The City has steadily rebuilt its financial standing through governance and operating performance.
The dual credit rating increase also came the same week a federal bankruptcy court judge closed its 13-year-old case with the city.
Moody’s report noted: “The upgrade to A3 reflects the city’s strengthened financial resilience on par with A3 peers, supported by consistently solid operating performance, strong reserves, low leverage and good governance practices.”
Both agencies assigned a stable outlook for Detroit, S&P expressing its strong confidence in the Motor City’s long-term financial health and resiliency.
Mayor Mary Sheffield says the dual upgrade shows fiscal discipline can co-exist alongside increased investment in residents and neighborhoods
Recent and ongoing initiatives in Detroit
Investing in People and Neighborhoods
- block-level neighborhood investment, including a $9.5M program to eliminate the entire 6300-location backlog of sidewalk replacement requests, Brighten Up the Block initiative with the Public Lighting Authority to add thousands more mid-block lights to neighborhoods.
- Investment of $1.5M over three years in the RxKids program to provide cash prescriptions to the families of each new baby born in Detroit. The program has 2,600 families enrolled and has distributed nearly $5M.
- A commitment to pay all 9,000 city employees a livable wage of $21.45 per hour
Transformational Investments
- The University of Michigan Center for Innovation (UMCI), a major new research, education, and entrepreneurship hub under construction in downtown Detroit to provide workforce training and non-degree programs
- Henry Ford Health’s $2.2 billion Destination: Grand development, including a new hospital tower, expanded medical facilities, mixed-income housing, and new public green space
- AI and cybersecurity firm Eccalon headquarters at The Icon Building, reinforcing Detroit’s growing position as a technology and innovation hub and expected to create approximately 800 jobs
- Construction of two new 600-room convention center hotels to support the attraction of major conferences
Supporting Small Business
- Launch of the Detroit Small Business Technology Fund in partnership with the Detroit Economic Growth Corporation and Rocket Community Fund to help local businesses modernize and grow
- $1.5M investment in Motor City Match, helping 205 small businesses open in neighborhoods across the city
- $700,000 investment in the Detroit Start Up Fund to help support and attract innovators to Detroit
- $300,000 for the Detroit Legacy Business fund, providing grants to businesses that have operated in the city for at least 30 years
- Creating the position of Director of Retail Attraction
A Growing City
- “Move Detroit” population growth strategy focused on attracting new residents, retaining current Detroiters, and welcoming former residents back to the city through housing assistance, entrepreneurship support, and relocation incentives. The US Census Bureau recently announced Detroit’s third consecutive year of substantial population growth.
- Significant progress in residential growth and property values, the City added more than 12,000 residents between 2021 and 2024 and residential property values increasing by approximately $500 million
”These two rating increases also are a result of 12 years of sound, responsible budgetary choices made by the city department heads and Detroit City Council, alongside the expertise of our Chief Financial Officers.” said Mayor Mary Sheffield.