Detroit moved one step closer to seeing its bond rating emerge from junk, in a sign of its recovery more than five years after becoming the biggest U.S. city ever to go bankrupt, Bloomberg News reported. S&P Global Ratings yesterday raised its ranking of the city one notch to BB-, three steps below investment grade, because the government’s finances have been on the mend since coming out of bankruptcy in late 2014. The company said that the change reflects Detroit’s ability to cover rising pension and debt costs in the years ahead without running budget shortfalls, a benefit of the court proceedings that allowed it to cut obligations it couldn’t afford after decades of population and economic decline.
