Detroit's credit outlook was raised to stable from negative by Standard & Poor’s after the governor named an emergency manager to run it, Bloomberg News reported on Friday. To lead the turnaround of the state’s largest city, Michigan Governor Rick Snyder yesterday chose Kevyn Orr, a Washington, D.C.-based bankruptcy lawyer who helped Chrysler Group LLC reorganize in 2009. A recent review declared it in a financial emergency with a deficit that hit nearly $327 million in 2012 and long-term debt topping $14 billion. "We view the appointment of an emergency manager as a positive step toward regaining structural balance and improving the city’s overall financial condition," said Standard & Poor's credit analyst Jane Hudson Ridley. The city’s continued B rating on general-obligation bonds, five steps below investment grade, reflects its financial imbalance, revenue shortfalls and long-term obligations including potential swap-termination payments and unfunded retirement costs, the company said.
