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Moody's sees bankruptcy risk from Detroit fiscal emergency
March 4 |
March 4 (Reuters) - The city of Detroit would have a potential path to bankruptcy court under a state-appointed emergency financial manager posing risks to the city's bondholders, Moody's Investors Service said on Monday.
The ratings agency also pointed out that the appointment of a manager would be an additional termination trigger for interest rate swap agreements associated with pension debt the city sold in 2006.
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Comments (3)
james1031 wrote:
“Moody’s sees bankruptcy risk from Detroit fiscal emergency” Ya think?!
MrHyde wrote:
Yhe elephant in the living room that the politicians prefer skirt in their public pronouncements is the harsh reality that Detroit’s problems are structural in nature and cannot be corrected outside of the mechanisms afforded by the federal bankruptcy court. The revenue sources are simply not there now or in the forseeable future to generate sufficient funds to meet the current operating costs and $ 14B in future liabilities on the City’s books. This is a city that was home to 1.8 Million residents in the heyday of the 1950′s. Today, Detroit’s population is 700,000 and is 87% African American. It’s not difficult to see the hand writing on the wall for those who are not in denial.
WoobieKing wrote:
Detroit was at its greatest when it was a Republican stronghold. Since the Democrats, especially the blacks, took over, it’s been free-falling like the guy who jumped out of the balloon at the edge of space.
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