Before Detroit filed for bankruptcy, it defaulted on a $39.7 million payment on taxable pension debt.
The positive trend during the quarter in S&P's ratings stands in sharp contrast to the high pace of downgrades that another major credit agency, Moody's Investors Service, followed. Last week, Moody's said it expects many more downgrades in the year, as well, as the economic recovery remains slow and many local and state governments continue to confront budget challenges.
For just state and local governments, the ratio of upgrades to downgrades was 2.15 to 1, S&P said. It was even higher for the utility sector, 2.67 to 1. Not-for-profit health saw upgrades outnumber downgrades by 1.5 to 1.
But one sector, housing , had more downgrades than upgrades. S&P said that during the quarter it issued 24 downgrades and 12 upgrades in housing, largely because it downgraded Berkshire Hathaway, which supported much of the debt with guaranteed investment contracts.
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