Detroit Upgraded to B2 by Moody's

Moody's Investors Service said it has upgraded Detroit's issuer rating to B2 from B3.

Concurrently, it has revised the outlook to positive from stable.

This rating reflects the implicit general obligation unlimited tax pledge of the city and does not apply to the forthcoming income tax revenue bond issuance.

The upgrade to B2 reflects the city's improved financial position following its exit from bankruptcy.

The rating also incorporates management's continued improvement of city financial operations and signs of economic development in the city. Offsetting these factors are persistent tax base weakness, with continued population loss and taxable valuation declines that are expected to continue over the near term.

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