CHICAGO — Detroit's restructuring plan illustrates the threat that unfunded pensions and health care benefits pose to the bond market, and bond insurers specifically, Moody's Investors Service said Monday.

Detroit emergency manager Kevyn Orr's plan to bring down the city's $15 billion of debt relies on wiping out nearly $11.4 billion of what the city defines as unsecured debt. That puts $650 million of general obligation bonds not backed by a specific revenue lien on par with $1.4 billion of pension certificates, $5.7 billion of unfunded other post-employment benefits and $3.5 billion in unfunded pension obligations.

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