Detroit’s Bond Outlook, Municipal Services Appear Positive

Motor City has come a long way from its bankruptcy seven months ago

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By Dave Nyczepir

Route Fifty

Detroit’s been having a good week with credit-rating agency Standard & Poor’s deeming $245 million in municipal bonds “investment grade” Wednesday and Moody’s Investors Service upgrading the city’s issuer rating Thursday.

The Motor City exited the largest case of U.S. municipal bankruptcy seven months ago, and the “A” bonds will be sold to improve Detroit’s police and fire departments and public property.

The stable grade makes the bonds more palatable to investors by lowering their projected interest rate from 5.75 percent to as low as 4.75 percent, Detroit’s finance director, John Naglick, told the Detroit Free Press.

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