DETROIT – A top Wall Street rating
firm has put Wayne County on credit watch after the county asked last week for
the state to conduct a financial review of Michigan’s largest county that could
lead to a declaration of a financial emergency.
Standard & Poor’s announced the
move on Wednesday. The credit watch has “negative implications.”
Wayne County already had a low
credit rating of BB+ with the firm (though it remains out of junk status).
In its announcement of the action,
Standard & Poor’s said if the county goes into a financial emergency
declaration, it could lose some of its autonomy, which could affect financial
decisions.
But the firm also said the request
for a review does not mean necessarily that Wayne County will go into bankruptcy,
but could be part of the county’s determination to use “all possible
tools” to regain financial balance.
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