The City of Detroit announced that Standard & Poor’s Ratings Services (S&P) has issued a solid investment grade credit rating of “A/stable” on $245 million worth of bonds to be offered to the public by Barclay’s.

These bonds are financial recovery bonds that were originally privately placed with Barclays Capital as the city made it exit from Chapter 9 Bankruptcy.

The bonds are being used to finance a number of important projects in the city, including upgrading the Detroit Fire Department fleet and the city’s financial management infrastructure.

Because of the positive rating, the city believes it will save $2.5 million annually and $20 million in interest costs over the life of the debt.

Access the full City of Detroit news release here.