S&P 500 upgrades Ferndale to AA from AA- with a “stable outlook”

S&P’s action reflects the strength of the City's General Fund reserves due to years of structurally balanced operations and continued strengthening of the local economy

S&P noted the City's “good financial management, which consistently produces balanced budgets from conservative budgeting and maintains reserves at more than 25% of operating expenditures”

Standard and Poor’s Global Ratings has upgraded the City of Ferndale’s credit rating to AA with a “stable” outlook in a report issued Tuesday, April 5. The increase, according to the agency, reflects “the strength of the City's General Fund reserves due to years of structurally balanced operations and continued strengthening of the local economy.”

The report comes just days ahead of the presentation of the FYE 23-25 Triennial Budget before City Council, scheduled for Monday, April 11.  

“The rating reflects our opinion of the City's good financial management, which consistently produces balanced budgets from conservative budgeting and maintains reserves at more than 25% of operating expenditures,” the S&P report said. “It also mentioned:

• The City’s historically strong operating performance and maintenance of very strong reserves
• Leadership’s conservative budgeting during the height of COVID-19
• Management’s five-year, long-term capital plan it updates annually with identified funding sources
• Good financial management with risk-mitigating financial-management policies and practices under S&P’s Financial Management Assessment (FMA) methodology
• Stable local economy near Detroit with steady tax base growth and strong economic metrics

“This upgrade is the result of the City’s commitment to responsible financial management and multiyear budgeting,” said Ferndale City Manager Joseph Gacioch. "Our continued upward momentum and rating increase by the S&P is proof that the hard work we’ve done to keep our budget secure is being recognized.”

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