From the Free Press….

Another of the nation’s leading credit rating agencies has downgraded the City of Detroit’s credit rating to junk bond status, Mayor Ken Cockrel Jr. said today.
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The announcement by Moody’s follows Standard & Poor’s assignment of junk bond status to the city’s debt last week. The downgrade to junk bond status allows certain investors to claim a payout from the city totaling $400 million, an amount that could force the city into bankruptcy.

So far, no investors have requested the money from the city, according to the advisory from Moody’s.

Moody’s downgraded Detroit’s debt to Ba2 from Baa3 and to Ba3 from Ba1. It attributed the downgrade to the city’s $300-million budget deficit, delays in producing a required annual audit and the declining local economy.

This is why rating agencies are a joke. Any sane person knew that the city of Detroit’s debt was junk a long time ago.