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Moody's cuts Detroit debt ratings deeper into junk
November 28, 2012 / 10:31 PM / 5 years ago

Moody's cuts Detroit debt ratings deeper into junk

Nov 28 (Reuters) - Moody’s Investors Service on Wednesday lowered Detroit’s debt ratings deeper in the junk category because of the city’s low cash reserves and its weaker oversight by the state of Michigan.

The rating agency cut Detroit’s unlimited tax general obligation rating to Caa1 from B3, its limited tax GO rating to Caa2 from Caa1, and also downgraded ratings on the city’s water and sewerage revenue bonds.

Moody’s also placed a negative outlook on the lowered ratings, citing in part “the rising possibility that the city could file for bankruptcy or default on an obligation over the next 12 to 24 months.”

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