CHICAGO - Detroit lost one of its two investment-grade ratings yesterday, when Moddy's Investors Service downgraded the city's general obligation rating to Ba 1 from Baa, citing concerns over the city's ability to maintain balanced fiscal operations.

The rating move affects $272 million of the city's outstanding GO unlimited tax debt. On June 4 Standard & Poor's Corp. affirmed a BBB rating with a negative outlook for $276 million of the city's GO debt.

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