A year after almost lapsing into insolvency, Detroit’s home county is showing signs of a turnaround, Bloomberg News reported today. Wayne County has cut retiree health care bills, reduced pension benefits and lowered labor costs, turning once chronic deficits into surpluses. The improvements have caught the eye of rating companies, with Fitch Ratings last month raising it four levels to BB+ — one step below investment grade — and Moody’s Investors Service and S&P Global Ratings improving their outlooks. The nascent financial recovery shows the county of about 1.8 million residents is finding a way to adjust to the population declines and debt that pushed Detroit, its largest city, into bankruptcy three years ago. When the fiscal year ends in September, the government expects to have $67.6 million on hand, compared with a deficit of $146 million in 2013.
