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Moody's says Emergency Manager could hurt Detroit

A general view of downtown Detroit's skyline in Detroit, Michigan
A general view of downtown Detroit's skyline in Detroit, Michigan

DETROIT (WKZO) -- An investor service says that Governor Rick Snyder's decision to appoint an emergency manager for Detroit could hurt the city's financial outlook.

Moody's Investor Service says the move could help stabilize the city's budgets but it also provides a clearer path to a Chapter 9 municipal bankruptcy if the issues aren't fixed.  In February, a review team found more than 14-billion dollars in long-term bond and retiree-benefits liabilities on top of the city's 327-million dollar deficit.

City officials have until March 11th to request a hearing with the governor to appeal his emergency manager decision.