Fitch Ratings downgraded to D from C the rating on $1.5 billion of pension obligation certificates of participation issued by Detroit in 2005 and 2006. The downgrade comes after Detroit missed a $39.7 million pay due on the COPs last Friday. Before the default, Detroit emergency manager Keyvn Orr warned that the city was putting a moratorium on all unsecured debt payments.
"The 'D' rating indicates failure to make payment of principal and/or interest under the contractual terms of the rated obligation," Fitch analyst Arlene Bohner said in a release.
