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KBRA Affirms A Rating with Stable Outlook on the City of Detroit Downtown Development Authority Tax Increment Revenue Bonds

4 Jun 2026   |   New York

Contacts

KBRA affirms the long-term rating of A with a Stable Outlook on the City of Detroit Downtown Development Authority (DDA) Tax Increment (TIF) Revenue Refunding Bonds, Series 2024 (Catalyst Development Project)

Key Credit Considerations

Credit Positives

  • Pledged Revenues provide sound coverage of maximum annual debt service.
  • Established growth trend in Pledged Revenues and expected future investment within the District supporting growth in taxable property valuation and incremental value.
  • With the Bond Indenture prohibiting the issuance of parity new money bonds, annual debt service requirements should decline as the DDA pre-pays the accelerated amortization bonds, enhancing coverage.

Credit Challenges

  • While improving, the Detroit economy remains susceptible to disruptive conditions that could result in decreased taxable value, reduced TIF revenues, and decreased coverage levels.

Rating Sensitivities

For Upgrade

  • Significant development and diversification in the District resulting in increased Pledged Revenues and higher debt service coverage.

For Downgrade

  • Declining property values, reduced investments, or other economic factors that significantly weaken available Pledged Revenues and debt service coverage.
  • Any actions by the City of Detroit, State of Michigan, Wayne County, or other taxing entities to reduce tax rates, reduce taxable property value, or in any other way weaken the Pledged Revenues.
  • Any change to the City of Detroit's or Wayne County’s practices that erodes DDA’s current insulation from historically weak county-wide property tax collections.

To access ratings and relevant documents, click here.

Methodology

Disclosures

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1015399