CHICAGO - Moody's Investors Service this week hit Detroit with its second downgrade so far this year, pushing the beleaguered city's debt deeper into junk-bond territory and warning of further fiscal and economic challenges on the horizon.

At the epicenter of the damaged U.S. automobile industry, Detroit suffers from a 28.2% unemployment rate, a $275 million accumulated deficit, and falling revenues that have led some officials to talk publicly of the possibility of filling for bankruptcy.

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