UPDATE 1-Fitch cuts Michigan's Wayne County LT GOs to junk status
Aug 13 (Reuters) - Fitch Ratings on Tuesday downgraded the ratings on Wayne County, Michigan's limited tax general obligation bonds to BB-minus from BBB-plus citing "rapid financial deterioration."
The credit ratings agency added that the ratings are now on negative watch, meaning they could be cut further in to junk status. Detroit is the county seat.
High unemployment, contraction of the tax base, population decline, below-average income levels and the county's failure to reduce the accumulated deficit have all contributed to the weakening local economy, Fitch said.
Fitch cut the following debt to BB-minus from BBB-plus:
$195.5 million limited tax general obligation bonds issued by Wayne County;
$58.2 million building authority refunding bonds, series 2012 (Wayne County limited tax general obligation) issued by Detroit/Wayne County Stadium Authority, and
$210.6 million building authority bonds issued by Wayne County Building Authority.
Fitch also cut Wayne County's unlimited tax general obligation (ULTGO) (implied) to double-B from A-minus.
- White House reverses, says Obama met uncle and lived with him during law school
- South Africans, some fearful, wake to life without Mandela |
- U.S. television, Twitter, alive with new version of 'Sound of Music'
- RPT-UPDATE 1-Ford leans on global Mustang to burnish overseas image
- Ford leans on global Mustang to burnish overseas image