Moody's Ratings upgrades Macomb (County of), MI to Aaa from Aa1; outlook changed to stable from positive

Moody’s Investors Service has upgraded the credit rating of the City of Detroit, Michigan, from Baa2 to Baa1, with a positive outlook, marking its 11th consecutive upgrade since emerging from bankruptcy in 2014 according to Moody's report. The rating agency cited Detroit’s “financial resiliency,” strong governance practices, and robust reserves as key factors in the decision. Moody’s noted that the city has maintained consistently high reserve levels, even during periods of economic uncertainty, and has demonstrated a track record of solid operating performance.

Detroit’s tax base has more than doubled in the past five years, driven by residential value appreciation and ongoing development projects, including the $1.4 billion Hudson’s Detroit complex and the $3 billion Destination Grand initiative. The city has also exceeded expectations outlined in its 2013 Plan of Adjustment, including surpassing projected job growth, property value increases, and income tax revenue targets.

Mayor Mike Duggan credited 11 years of collaborative budget decisions by City Council and the work of successive CFOs for the city’s fiscal progress. Moody’s report highlighted Detroit’s ability to absorb cost pressures amid national economic challenges, supported by its growing tax base and low leverage.

The State Financial Review Commission recently approved a waiver of active oversight, reinforcing confidence in Detroit’s financial management. While future population decline remains a risk, recent Census data show Detroit has reversed decades of population loss, adding 7,000 residents annually over the past two years.

This upgrade underscores Detroit’s transformation into a financially stable municipality, with Moody’s expressing optimism about its continued resilience and growth trajectory.