Detroit’s credit rating is now higher than Chicago’s. Moody’s puts Detroit at A3 and Chicago at Baa3, three notches lower, a comparison that would have been unthinkable when Detroit filed the largest municipal bankruptcy in American history. The case closed on May 19, 2026, and S&P and Moody’s both upgraded the city within about a week. Here is what actually changed and what the numbers mean.
Where Detroit Stands
| Bankruptcy case | Closed May 19, 2026, by federal court order |
| Moody’s | A3, the first A category rating since 1999 |
| S&P | BBB+, upgraded from BBB |
| Balanced budgets | 12 consecutive, according to the city |
| Reserves | More than $500 million |
| Chicago, for comparison | Baa3 at Moody’s and BBB at S&P, both below Detroit, with Fitch and KBRA downgrades in February 2026 |
The Case Is Actually Closed
On May 19, 2026, a federal bankruptcy judge granted the city’s request for a final decree, which formally ended the Chapter 9 case filed in July 2013. Court supervision is over.
The city headlined its announcement as the end of 13.5 years of court supervision, though the same release calls it nearly 13 years and dates the start to the July 2013 filing. Measured from that filing to the May 2026 closure, it runs about 12 years and 10 months.
The Detroit Credit Rating, Upgraded Twice in One Week
Moody’s raised Detroit to A3 from Baa1, which put the city back in the A category for the first time since 1999. Worth being clear about the size of that step: Detroit had already climbed back to investment grade in earlier years, so this was a move up within investment grade, not a jump out of junk. Moody’s said the city’s budget management should keep its available fund balance ratio around 30 percent in fiscal 2026. Separately, S&P Global Ratings moved its general obligation rating to BBB+ from BBB, citing sustained strong financial performance and governance conditions.
The Detroit credit rating matters for a practical reason rather than a symbolic one. A higher rating means the city borrows at lower interest, so the same road, park, or fire truck costs less to finance. Over a capital program, that difference is measured in millions.
The Chicago Comparison
Moody’s affirmed Chicago at Baa3 in September 2025 and cut its outlook to stable from positive. Baa3 sits at the bottom edge of investment grade, three notches below Detroit’s A3.
Chicago’s year got harder after that. In February 2026, Fitch downgraded the city’s general obligation bonds to BBB+ from A-, and KBRA cut it to the same BBB+ level that same week. Both kept negative outlooks, citing operating deficits and a rising fixed cost burden. S&P has Chicago at BBB with a negative outlook, one notch below Detroit, so Detroit now rates higher at both Moody’s and S&P.
Worth being precise about what this does and does not mean. Chicago is a far larger economy carrying pension costs Detroit reduced in bankruptcy, through benefit cuts and a ten-year pause on contributions that ended when the city resumed legacy pension payments in fiscal 2024. The comparison is about how lenders price risk today, not about which city is doing better by every measure.
What the City Points To
City officials cite 12 consecutive balanced budgets, more than $500 million in reserves, and the return to investment grade. Full year-end figures are published by the Detroit Office of the Chief Financial Officer.
Mayor Mary Sheffield said Detroit continues to show it has its financial house in order and has become a model city for effective and responsible fiscal management.
Why It Matters
The supervision that ended in May was the Chapter 9 case itself, not review of the city budget. Active state oversight of Detroit’s budgets ended in April 2018, when the Financial Review Commission granted the first of the annual waivers it has issued every year since, and the commission still reviews the city’s finances before granting each one. What closed in May was the case file. What moves the cost of borrowing is the rating.
For more on how city finances shape what gets built, see our Community coverage.
Detroit Bankruptcy and Credit Rating FAQ
Is Detroit still in bankruptcy?
No. The case closed May 19, 2026.
What is the Detroit credit rating now?
A3 from Moody’s and BBB+ from S&P.
Is that higher than Chicago?
Yes, at both Moody’s and S&P. Moody’s has Detroit three notches higher, and S&P has Detroit one notch higher.
How much is in reserves?
More than $500 million.