Moody's also said the plan is unusual as it proposes similar treatment of various debt security types.
It noted that Orr did not propose a plan for creditors who are considered secured, such as the debt of the city's water and sewer enterprises or the city's general obligation debt, which is enhanced by state aid and claims relative to interest rate swaps. However, the latter are subject to negotiations.
"The plan appears to treat the general obligation and pension obligation certificates similarly, which would be a break from tradition," Moody's said.
Standard & Poor's, which on Friday downgraded the city to CC from CCC minus, said it was sure to cut the rating further.
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