Standard & Poor's Ratings Services said it has lowered its rating on Detroit, Mich.'s limited- and unlimited-tax general obligation debt to C from CC.

The outlook is negative.

"The downgrade reflects the city's position as the subject of a bankruptcy petition, as of July 18, 2013," said Standard & Poor's credit analyst Jane Ridley.

"The negative outlook reflects our expectation that, given the Emergency Manager's statements regarding debt restructuring, actions taken to date, and negotiations currently underway with bondholders, we could lower the rating in the one-year time horizon of the outlook," added Ridley.

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