CHICAGO — Fitch Ratings downgraded Wayne County, Mich. general obligation bonds five notches Tuesday, sinking them to junk-bond status, citing the county's rapidly deteriorating fiscal condition.

Fitch also warned of the potential for further negative action by placing the ratings on negative watch. That's due to the county's need this fall to borrow for cash flow as local governments in the state struggle with affordable market access following Detroit's July bankruptcy filing and attempts to treat its GOs as unsecured debt. Detroit is Wayne County's seat.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.