Moody's sees bankruptcy risk from Detroit fiscal emergency

March 4 | Mon Mar 4, 2013 3:10pm EST

March 4 (Reuters) - The city of Detroit would have a potential path to bankruptcy court under a state-appointed emergency financial manager posing risks to the city's bondholders, Moody's Investors Service said on Monday.

The ratings agency also pointed out that the appointment of a manager would be an additional termination trigger for interest rate swap agreements associated with pension debt the city sold in 2006.

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