The City of Detroit returned to an investment grade credit rating for the first time since 2009, officials announced this week.
Moody's raised Detroit's credit rating two notches from Ba1 to Baa2 with a positive outlook, according to the city.
Last Friday, Moody's released its report that praised the city's financial performance over the past decade.
In June 2013, one month before the city filed bankruptcy, the bond rating was at Caa3.
“The upgrade of the issuer and GOULT ratings to Baa2 reflects Moody's expectation that the city will continue to bolster its financial resiliency and maintain the track record of solid operating performance that has been seen over the past several years," Moody's said in the report.
Detroit Mayor Mike Duggan gave praise to several people who have worked to raise the rating over the past several years.
“It has been 10 years of hard choices and sound financial management by these great leaders,” Duggan said. “No one in 2014 would have predicted Detroit returning to investment grade in less than a decade.
The increase now opens the city's bonds to a wider market with lower interest rates. The city said it can reprioritize taxpayer money that would have been allocated toward paying interest.
“This achievement reflects the dedication and hard work of countless individuals. Our team, alongside leaders across all departments, have been instrumental in driving this positive change. We are committed to maintaining this fiscal responsibility for the benefit of all Detroiters," Jay Rising said.
