Fitch Ratings this week affirmed Romulus’ BBB-plus rating and revised its outlook to stable from negative, citing the city’s improving financial operations.
The Detroit suburb has $5.75 million of outstanding limited-tax general obligation capital improvement bonds that were issued in 2006 and $15.2 million of limited-tax GO recreation center bonds issued by the Romulus Tax Increment Finance Authority.
The TIF bonds are secured by the city’s full faith and credit in addition to the tax-increment revenues. Fitch rates all of the city’s limited-tax GO bonds BBB-plus and maintains an implied A-minus unlimited-tax GO rating.
Romulus, which is home to Detroit Metropolitan Wayne County Airport, has seen smaller fund-balance declines since 2010, and so far this year is projecting balanced operations for the rest of fiscal 2012.
General Motors, the city’s largest taxpayer, is investing $300 million in a renovation of its engine facility.
