ANN ARBOR — S&P Global Ratings has upgraded the City of Ann Arbor’s credit rating from “AA+” to “AAA,” the highest rating a municipality can be assigned. S&P cited the city’s very strong management, trend of robust operating performance, resilient economy, and strengthened financial position as reasons for the rating upgrade. The improved credit rating was assigned as the city prepares for the sale of its 2024 Capital Improvement Bonds. Ann Arbor is now one of only nine Michigan cities that holds the prestigious “AAA” rating from S&P Global Ratings and is also the most populous the AAA cities.
Funds raised by the sale of bonds will be used to support a 63-unit housing development in the downtown area. The project is part of the Ann Arbor Housing Commission’s effort to address affordable housing needs in the city. The recently approved affordable housing millage is the intended payment source for the debt service on the bonds.
The bonds are scheduled to sell on June 18. According to the city’s financial advisor, PFM Financial Advisors, the credit rating reflects the market’s confidence in the city’s financial strength, which will have a positive impact on the cost of borrowing for the city.
Photo by James Haefner
