Standard & Poor's boosts Detroit's rating on revenue bonds

AP News
Posted: Jul 29, 2015 5:06 PM

DETROIT (AP) — Standard & Poor's has boosted Detroit's rating on eight- to 15-year bonds the city plans to sell to improve public services.

The revenue bonds have been given an "A'' rating by S&P. S&P also gave Detroit a "B'' issuer credit rating. Both have stable outlooks.

City officials said Wednesday that the better rating could get Detroit a lower interest rate and save $20 million in interest over the life of the bonds.

The $245 million bonds are backed by city income tax revenue and were part of Detroit's bankruptcy exit financing. They will be issued by the Michigan Finance Authority and pay for — among other things — blight removal and public safety improvements.

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Standard & Poor's in 2009 lowered its rating of Detroit's bonds to junk status.