OREANDA-NEWS. Fitch Ratings has placed the following Wayne County, Michigan (the county) ratings on Rating Watch Negative:

--\$190.9 million limited tax general obligation (LTGO) bonds issued by Wayne County 'BB-';
--\$54.9 million building authority (stadium) refunding bonds, series 2012 (Wayne County LTGO) issued by Detroit/Wayne County Stadium Authority 'BB-';
--\$207.2 million building authority bonds issued by Wayne County Building Authority 'BB-';
--Wayne County unlimited tax general obligation (ULTGO) (implied) 'BB'.

Previously, the Rating Outlook was Negative.

SECURITY

LTGO bonds issued by the county carry the county's general obligation ad valorem tax pledge, subject to applicable charter, statutory and constitutional limitations.

Stadium authority and building authority bonds are secured by lease payments from the county to the respective authority. The obligation to make the rental payments is not subject to appropriation, setoff or abatement for any cause, and carries the county's LTGO pledge.

KEY RATING DRIVERS

The Negative Watch stems from recent public statements by the county executive that the projected fiscal 2015 operating deficit is larger than previously reported and that cash will be depleted by August 2016. The revised forecast is based upon a new analysis by Ernst & Young, which Fitch has not yet reviewed. Additionally, the county has retained a 'Chief Restructuring Officer' which raises concerns about the county's commitment to full and timely debt repayment. The county executive has been quoted in media reports as saying that bankruptcy is a possibility, albeit not a likely one at this point. Fitch plans to review the Ernst & Young report and discuss these concerns with the county in the near term at which time the Rating Watch will be resolved.