MOODY'S PLACES ON WATCHLIST FOR POSSIBLE DOWNGRADE MICHIGAN MUNICIPAL BOND AUTHORITY'S PUBLIC SCHOOL ACADEMY FACILITIES PROGRAM REVENUE BONDS (DETROIT ACADEMY OF ARTS AND SCIENCES), SERIES A AND B

Posted on: December 18, 2009, 9:55 pm

NEW YORK, Dec 18, 2009 -- Moody's Investors Service has placed on Watchlist for possible downgrade the rating on the Michigan Municipal Bond Authority's (MI) Public School Academy Facilities Program Revenue Bonds (Detroit Academy of Arts and Sciences), Series A (tax-exempt) and Series B (federally taxable), affecting $28.4 million in outstanding debt. The Watchlist action reflects Moody's expectation that the academy will remain challenged due to narrow liquidity, continued reliance on cashflow borrowing for operations and pressured revenue streams that are expected to remain stressed through the midterm. The Watchlist action is also prompted by the lack of sufficient current operating information. If the information is not obtained within the next 60 days, we will take appropriate rating action which could include the withdrawal or lowering of the rating...

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