New York, October 20, 2014 -- Moody's Investors Service has downgraded the City of Detroit's (MI) Certificates of Participation (COPs) rating to C from Ca. We have not assigned an outlook to the C rating. The rating action concludes a review for possible downgrade, commenced on October 8, 2014. The COPs were issued to help fund the city's pension obligations and are secured by the city's unconditional contractual obligation to pay debt service, which is not subject to annual appropriation. The city defaulted on its COPs on June 15, 2013, just prior to filing for bankruptcy on July 18, 2013. As of the bankruptcy petition date, the city had $1.45 billion of COPs outstanding.
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