On Friday, Moody's Investors Service downgraded a number of Detroit bonds, including its general obligation unlimited bonds. As a result, all Detroit bonds are now below investment grade.
Hetty Chang, a vice president with Moody's, said "the emergency manager's proposal to creditors indicates further debt restructuring."
"We also believe the city's risk of bankruptcy has increased over the last six months," she said in a statement.
Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.