Fitch Downgrades Detroit Water and Sewer Bonds

On April 1, 2013, Fitch Ratings downgraded its rating of $5.87 billion in Detroit water and sewer bonds. Fitch revised its Rating Outlook to Negative from Stable.  

About $1.9 billion of senior lien water revenue bonds were cut to BBB-plus from A, $1.1 billion of second lien water revenue bonds were downgraded to BBB from A-minus, $1.9 billion of senior lien sewer revenue bonds were cut to BBB-plus from A-minus, and $974 million of second lien sewer revenue bonds were lowered to BBB from BBB-plus.

The factors ininfluencing Fitch's decision are discussed here. 

For prior posts about DWSD's debt rating, click here.

For more about DWSD Update, click here.