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S&P cuts Detroit pension debt rating to D on default
June 18, 2013 / 7:18 PM / 4 years ago

S&P cuts Detroit pension debt rating to D on default

June 18 (Reuters) - Standard & Poor’s Ratings Services on Tuesday lowered the rating on Detroit’s pension obligation certificates of participation to D from CC in the wake of the city’s decision to stop payments on the debt.

“The downgrade reflects non-payment of debt service on the scheduled principal and interest payment date of June 15,” S&P credit analyst Jane Hudson Ridley said in a statement.

Detroit’s emergency manager announced on Friday that the cash-strapped city would cease payments on its unsecured debt, starting with the COPs payment of about $39.7 million.

Both Moody’s Investors Service and Fitch Ratings on Monday dropped their ratings on about $1.5 billion of COPs to levels signifying default.

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