Standard & Poor's Ratings Services on Wednesday downgraded Detroit's credit rating on general obligation bonds after the city defaulted on a debt payment due Tuesday.
S&P downgraded Detroit in unlimited and limited-tax general obligation bonds from a "C" to "D" rating. On Monday, another Wall Street credit-rating agency, Fitch Ratings, made a similar move in response to the planned default.
Bill Nowling, a spokesman for Emergency Manager Kevyn Orr, said Detroit has $641 million in unsecured general obligation bonds and that "no unsecured debt is being paid right now."
Nowling said an interest-only payment of about $4.3 million was made Tuesday on $479 million in general obligation bonds secured by tax revenue.
Detroit's nonpayment on unsecured bonds comes after Orr skipped a $40 million payment in June on pension debt ahead of filing for bankruptcy in July.