Detroit to be showcased at Michigan investor conference
The Michigan Department of Treasury is partnering with the Michigan Finance Authority, State Building Authority, Michigan Department of Transportation and the city of Detroit to hold a Michigan Investor Summit on June 7 in Detroit.
The focus of the event is to share information about state issuer and Detroit credits, their planned upcoming issues and to discuss the positive momentum for Michigan’s state and local governments. State Treasurer Nick Khouri and Detroit Mayor Mike Duggan are slated to speak.
It’s the city’s first bond investor conference since exiting active state oversight earlier this year. Detroit did an investor presentation in the summer of 2015, when it syndicated the exit financing backed by income taxes. It was held at Barclays in NY.
“The city was asked to participate by the state and we thought it was a great opportunity to carry the message of the city's recovery to the investor community,” a city spokesperson said. “Our part of the conference will include a presentation by the mayor on the city's economic, workforce and neighborhood development strategies.”
Following Detroit’s bankruptcy, the state and city have developed a relationship and partnership to achieve joint goals.
The state relinquished control of the city’s finances on April 30, three years after Detroit's Chapter 9 exit in December 2014. The city now has the power to enter into contracts and enact city budgets without seeking state approval first.
The decision to scale back oversight was triggered by three consecutive years of balanced budgets along with three years of projected balanced operations.
Bond market access on its own, without state enhancement, remains elusive but is on the city's list of goals. Ongoing fiscal strides will help with ratings and eventually get the city to a place where it can access the market on a standalone basis, Detroit Chief Financial Officer John Hill has said.
On May 22, Moody’s Investors Service upgraded the city’s issuer rating to Ba3 from B1, outlook stable. In December, S&P Global Ratings upgraded the city’s issuer credit rating to B-plus. The outlook is stable.