Reuters: Bankruptcy News: S&P puts Detroit sewer bond ratings on watch negative

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S&P puts Detroit sewer bond ratings on watch negative Jul 19th 2013, 16:43 July 19 | Fri Jul 19, 2013 12:43pm EDT July 19 (Reuters) - Standard & Poor's Ratings Services on Friday put Detroit's sewer revenue bond ratings on CreditWatch negative after the city's Chapter 9 filing on Thursday. "If a debt restructuring or negotiated exchange was announced, we would likely drop the rating to CC. We rate an issuer or issue 'CC' when we expect default to be a virtual certainty, regardless of the time to default," S&P said. "The rating would be lowered further if the sewer revenue bonds become a specific subject of the bankruptcy petition or actual payments are not made on time," the rating agency said. Earlier on Friday, Standard & Poor's Ratings Services cut its rating on Detroit's general obligation debt to 'C' from 'CC' on Friday, and gave the bankrupt Michigan city a negative outlook.

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