S&P cuts Detroit's GO debt further into junk status

Fri Jul 19, 2013 8:25am EDT

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(Reuters) - Standard & Poor's Ratings Services cut its rating on Detroit's general obligation debt to 'C' from 'CC' on Friday, and gave the bankrupt Michigan city a negative outlook.

"The downgrade reflects the city's position as the subject of a bankruptcy petition, as of July 18, 2013," said Standard & Poor's credit analyst Jane Ridley.

"The negative outlook reflects our expectation that, given the Emergency Manager's statements regarding debt restructuring, actions taken to date, and negotiations currently underway with bondholders, we could lower the rating in the one-year time horizon of the outlook," Ridley said.

(Reporting by Edward Krudy; Editing by Chizu Nomiyama)

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Comments (1)
morbas wrote:
What does it take for you to copy the ‘National Tax Code’ to a postcard and send it to two Senators and one Representative but ‘One Dollar’. Detroit’s failure is moving to North Carolina as the agenda is to flat rate tax the people. A revenue based on poverty will result in State indebtedness, insidiously passed on to the lower 4/5th as debtors and junk bond holders.
National Tax Code
We the people of this United States do proclaim this federal government ‘of, by and for the people’. That, in order to fairly distribute revenue burden, to satisfy ‘net income’ progressive taxation, to balance all governments budgets, and to not tax poverty;
The people mandate:
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Income National Tax code that shall use margin graduated income tax principle: Margin $30k 0% single, $60K 0% joint, income above this a linear increasing rate {Income-[$30k or $60k])*(Income/$300k)*90%; 90% limit} . Exemptions shall be prohibited. The Federal Reserve shall amend the (90%) rate, and control currency printing mandated to maintaining currency availability and value. The Federal Reserve shall set the Margin rate value well (>2x) above highest of all State Poverty Level(s). Revenue shall be proportioned 1/3rd federal,1/3rd state proportioned per cast ballot and 1/3rd municipality proportioned per cast ballot.
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This National Tax is a peoples tax, no other citizen taxation shall be permitted. Business shall not be taxed. The Federal Reserve shall control taxation. The people will by simple majority approve or reject all margin and rate changes at every Congressional House Representative election year ballot.
———-
To:
Office of_______________________
U.S. House of Representatives
Washington, DC 20515
———-
To:
Office of Senator ______________
United States Senate
Washington, D.C. 20510

Jul 19, 2013 10:01am EDT  --  Report as abuse
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