Caitlin Devitt

CHICAGO — Detroit’s fiscal problems could act as a contagion for local governments across Michigan and the state itself, driving up borrowing costs and restricting access to credit, warns a new report by the Legislature’s independent Senate Fiscal Agency.

Moody’s Investors Service downgraded to Baa1 its underlying rating on Bishop International Airport.

Standard & Poor’s downgraded to AA-minus from AA its long-term and underlying rating on an Indianapolis-area school district due to a decrease in general fund reserves.

A developer’s effort to renovate South Bend’s tallest building into a high-end boutique hotel and senior-living center advanced last week when the city’s Economic Development Commission approved a plan for $7.5 million of city-issued bonds on behalf of the project.

CHICAGO — Ohio will take bids on $75 million of general obligation bonds Wednesday in the state’s first competitive sale since the 2008 market crash.

CHICAGO — Moody’s Investors Service downgraded more nonprofit health care providers than it upgraded during the third quarter, a trend it expects to continue through 2011, the agency said in a new report.

CHICAGO — The Ohio Housing Finance Agency will take institutional orders Thursday on $130 million of mortgage revenue bonds offered under the federal new issue bond program, marking the agency’s first — and likely its only — new-money transaction of the year.

CHICAGO — Novi, Mich.-based Trinity Health Credit Group, one of the country’s largest health care systems, enters the market Wednesday with $276 million of debt.

Standard & Poor’s removed the capital outlay certificates issued by 23 South Dakota school districts from negative credit watch, raising six ratings, affirming 10, and lowering seven.

The University of Nebraska board of regents will vote Friday on a $56 million plan to expand its Memorial Stadium to make it more competitive with other Big 10 stadiums. The Cornhuskers join the Big Ten conference next year.

Michigan Gov. Jennifer Granholm urged legislators Monday to restore $25 million cut from a tourism campaign after the state discovered it amassed a $120 million surplus during fiscal year 2011, which ended Sept. 30.

Detroit Public Schools emergency financial manager Robert Bobb said he was "very, very happy" with the final interest rates the troubled district saw on its $210 million stimulus-related borrowing Wednesday.

CHICAGO — Indiana auditors warned that the long-struggling city of Gary could face insolvency as it tries to overcome massive drops in property tax revenue tied to the state’s two-year-old tax cap legislation.

CHICAGO — Detroit Public Schools emergency financial manager Robert Bobb is promoting an investment in Wednesday’s $210 million sale of taxable stimulus bonds as an investment in both the troubled district and the future of Detroit.

Moody’s Investors Service upgraded to Aa3 from Baa2 its rating on St. Luke’s Hospital after it officially joined ProMedica Health System.

Moody’s Investors Service revised its outlook to negative Monday and affirmed its Aa3 rating on Earlham College. The liberal arts college in Richmond has $36.4 million of direct debt, of which $26.5 million is rated by Moody’s.

CHICAGO — After years of selling its long-term debt through negotiated sales, the Cleveland Metropolitan School District opted to take competitive bids on its recent issue of $55 million of qualified school construction bonds.

CHICAGO — Detroit Public Schools will hit the market Tuesday, taking retail orders on roughly $210 million of debt and opening it up to institutional buyers Wednesday.

CHICAGO — The continuing-care retirement community sector is starting to show signs of stabilization after suffering through two years of hardship, according to credit analysts.

CHICAGO — Michigan lawmakers Wednesday were expected to wrap up the final $46.7 billion all-funds budget for 2011 as the state heads into a new fiscal year Friday.