Detroit's credit rating downgraded by second agency

Another blow came to Detroit fiscal health today as a second bond rating agency downgraded the city’s credit rating. Fitch Ratings cited the potential for the city to run out of cash and “a lack of progress in resolving an acute situation” as reasons for the downgrade.

“The downgrade and maintenance…are based on delays in implementation of actions at the city and state level that might avert a fiscal crisis for the city,” the Fitch report said. “Fitch sees no assurance that the considerable hurdles to implementing urgently needed changes in the city's financial profile will abate.”

The rating agency downgraded by two notches $553 million in unlimited tax general obligation bonds and $486 million in limited tax general obligation bonds. Fitch also downgraded by two notches $1.5 billion in pension obligation certificates through the Detroit Retirement Systems Funding Trust. Read More