DETROIT
06/14/2013 12:39 pm ET Updated Aug 14, 2013

Detroit Default Possible If Payments Aren't Made Under Restructuring Plan: Fitch Ratings

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June 14 (Reuters) - Credit rating agency Fitch said it would consider Detroit to be in default if it stops making payments on certain obligations as indicated Friday by the city's emergency manager.

Emergency manager Kevyn Orr told city creditors at a meeting on Friday that Detroit would stop making payments on some debt, including a $34 million payment on pension certificates of participation due on Friday.

"If the payment doesn't get made, we would downgrade the rating from the current level of 'CC' to 'D,' for default," said Arlene Bohner, Fitch's director and manager of the Midwest/Great Lakes Tax Supported Group.

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