Marathon Pundit: Detroit area: Rating on some Wayne County bonds lowered to junk status

Coming to a county near you? Especially if you live in Illinois or California?

Detroit is the county seat of Wayne County.

From the Detroit News:

A New York bond rating agency has downgraded Wayne County’s rating on some bonds to junk status.

Fitch Ratings lowered the rating to BB- on Tuesday and placed it on a “negative watch,” according to a news release.

The ratings company cited the county’s financial problems, including those tied to the overbudget jail and pension system, which is only 45.9 percent funded.

"The unrestricted accumulated deficit grew in fiscal 2012 and is expected to deepen yet again in fiscal 2013, despite significant expenditure cuts," according to the release. "Fitch is concerned that the even deeper cuts planned for fiscal 2014 may not be enough for meaningful deficit reduction given other budgetary pressures."