Moody's Investors Service last week affirmed its B1 rating and negative outlook on Detroit Public Schools, saying the district has seen improved financial results in 2011 and 2012, but still faces serious challenges.

DPS, which is under emergency management, has $2.1 billion of long-term outstanding debt. The district's 2011 sale of deficit bonds stabilized its general fund position but elevated its debt burden, Moody's said.

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