Wayne County received a vote of confidence via a new report from a credit rating firm that shows the county is in a strong financial position.
The rating agency based the improved rating on Wayne County’s reserves, reduced liabilities, and economic growth.
Moody’s Ratings has upgraded the County’s issuer rating and its general obligation bonds to Aa3 from A1, citing Wayne County’s strong reserves, declining long-term liabilities, and growing economic base.
The upgrade marks Wayne County’s continued upward trajectory in fiscal health. Wayne County was on the brink of bankruptcy about 10 years ago.
Since 2021, the County’s available fund balance ratio has climbed from 42% to 72%, while liabilities have dropped to their lowest level in decades, Wayne County officials said in a release.
Moody’s also credited the county’s disciplined budgeting, improved pension and retiree healthcare contributions, and a growing regional economy as reasons for the stable outlook.
“Nearly a decade ago, Wayne County was on the brink of insolvency,” said Wayne County Executive Warren C. Evans. “Today, national credit agencies are recognizing what we already know; Wayne County is financially strong, stable, and positioned for long-term success. This upgrade is the product of responsible budgeting, tough decisions, and a team committed to serving our residents. It’s proof that when we stay disciplined, we can turn crisis into stability and stability into strength.”
Moody’s assigns issuer ratings to US cities and counties, ranking their creditworthiness using a standardized ratings scale which measures expected investor loss in the event of default.
Wayne County, home to 1.8 million residents across 34 cities and 9 townships, is one of the nation’s largest counties. The Aa3 rating places the County’s credit among the strongest in Michigan and reflects a decade-long trend of fiscal recovery.
Wayne County has received another major vote of confidence in its financial turnaround. Moody’s Ratings has upgraded the County’s issuer rating and its general obligation bonds to Aa3 from A1, citing Wayne County’s strong reserves, declining long-term liabilities, and growing economic base.
The city of Detroit also received a credit upgrade earlier this summer from the credit rating agency for the 11th year in a row.
“This is what happens when elected leaders set aside us-versus-them politics and work together,” Detroit Mayor Mike Duggan said in a July statement. “Our CFO team, department heads and City Council all have demonstrated tremendous fiscal discipline over the past 11 years to help bring us to where we are today and to lay a strong foundation for years to come.”
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