Standard & Poor's Ratings Services on Wednesday pushed the investment grade ratings on $5.42 billion of Detroit water and sewage revenue bonds down into the junk category, citing uncertainty over a potential restructuring of the debt by the emergency manager running the city, Reuters reported. Kevyn Orr, the corporate bankruptcy attorney picked by the state of Michigan in March to manage its biggest city, last month proposed spinning off Detroit's water and sewer services into an independent authority that could redeem or restructure outstanding revenue debt. S&P said that under a restructuring the repayment terms could change, including principal and interest amounts and the amortization schedule.
