July 26 Fitch Ratings said on Friday Detroit's
bankruptcy filing demonstrates state intervention limits and
does not preclude credit deterioration or default.
Although in the case of Pontiac, Michigan where the
emergency manager has restructured the city's finances, state
monitoring and intervention programs were a positive in a
Emergency managers in Michigan have among the greatest
powers of any state intervention mechanism in the country, Fitch
"The issue of intervening in distressed local government
situations is also getting attention at the federal level as the
Senate Appropriations Committee on Thursday approved an
amendment (as part of the fiscal year 2014 Financial Services
and General Government Appropriations Act) that would generally
disallow the government from aiding cities in financial
turmoil," the rating agency said in a statement.