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Old Posted Feb 11, 2019, 5:20 PM
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Location: Metropolitan Detroit
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Quote:
S&P upgrades Detroit's credit rating one notch closer to investment grade

CHAD LIVENGOOD
Crain's Detroit Business
February 07, 2019

-S&P upgrades Detroit's credit rating from B+ to BB-
-City's credit rating remains three notches below investment grade
-Rating upgrade follows $135 million bond sale solely using Detroit's credit

Detroit's credit rating is one step closer to exiting the Wall Street doldrums of junk bond status that has hampered the city's ability to borrow for years
Quote:
"The rating improvement reflects our view of the city's stabilizing financial position, whereby we feel it is well situated to absorb increasing pension commitments and scheduled increases in debt service in the coming years, as well as possible revenue setbacks, while still sustaining year-to-year budget balance and very strong reserves," S&P analysts wrote in a note to investors published Thursday.

S&P analysts cited several economic and budgetary factors that continue to restrain Detroit's credit rating, including a looming increase in pension payments set to escalate in 2024 after a 10-year post-bankruptcy pension holiday ends.

"We feel that stabilizing these neighborhoods will be key to long-term stability," S&P analysts wrote. "A major factor still holding back this progress continues to be the struggling state of the Detroit public school system."

At the end of June, the Detroit Police and Fire Retirement System was 77 percent funded, while the larger General Retirement System for city civil servants was 70 percent funded, according to the S&P report.

Detroit has set up a trust fund to cushion the blow of increased pension payments in 2024 when the city has to resume making full payments to the retirement systems after getting a 10-year reprieve in its 2013-2014 bankruptcy.
https://www.crainsdetroit.com/news/s...vestment-grade


Quote:
Detroit's Hotel Yorba under contract to new ownership

KIRK PINHO
Crain's Detroit Business
February 11, 2019



-Hotel Yorba under contract to unknown buyer
-Southwest Detroit property opened in 1926 on West Lafayette
-Broker, seller decline comment on pending deal
Quote:
The property listing says the sale is contingent upon the seller, which Detroit property records say is Gerald Jankowski, investing the proceeds in a 1031 exchange, which allows the seller to invest the proceeds in another real estate deal and defer capital gains taxes. The deal includes both the real estate and the business.

According to Historic Detroit, which tracks Detroit buildings and architecture, the hotel opened in 1926 after being designed by Detroit architecture firm Pollmar & Ropes for hotelier Samuel Plotkin. It cost less than $200,000 to build.

A 2013 article in Curbed Detroit describes it as a building that has "grown up to be part retirement home, part transient destination, and formerly part parolee drop-off." It has about 300 rooms.

The listing says the property is 49,500 square feet and has been on the market since late September. It also says it costs $100,000 annually to operate it.
https://www.crainsdetroit.com/voices...-new-ownership
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