CHICAGO -- Moody's Investors Service has put Detroit on notice that it could face a downgrade of its Baa general obligation rating next spring unless it has a "credible" plan to bring its budget into balance.

While the agency affirmed Detroit's rating on Friday in conjunction with the sale, possibly this week, of $39.8 million of unlimited tax GO bonds, it warned that the city's credit position "has reached a critical juncture."

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