Yvette Shields

Moody’s Investors Service has pushed Keokuk Area Hospital’s rating on $5.4 million of debt further into junk bond territory due to its weak operating performance.

Moody’s Investors Service has downgraded Champaign County one notch to Aa2 due to its declining financial position.

CHICAGO — The St. Paul Port Authority and lawyers for a group of investors who hold some of its 876 Fund economic development bonds will return to court Nov. 1 as litigation over the fate of $51 million of defaulted outstanding debt moves towards a trial date.

CHICAGO — The Metropolitan Water Reclamation District of Greater Chicago is conducting its first request for proposal process for underwriters as it prepares to sell $500 million of mostly Build America Bonds before the end of the year to help finance a long-term capital program of more than $2.5 billion.

CHICAGO — Chicago Public Schools said it was pleased with the final 1.2% rate the district will pay on its $257 million sale Thursday of qualified school construction bonds, given a round of negative rating actions and market conditions.

CHICAGO — The Illinois Finance Authority board this week advanced deals to help fund projects for the University of Chicago Medical Center and DePaul University and announced the successful pooling of federal recovery zone facility bond allocations from at least 15 cities and counties for Navistar International Corp.

CHICAGO — Retiring Chicago Mayor Richard Daley unveiled a $6.15 billion 2011 budget Wednesday that relies heavily on a series of one-time revenues from reserves, surplus tax-increment financing funds, and debt restructuring to close a record $654 million shortfall without the need for tax, fee, or fine increases.

CHICAGO — The St. Louis Metro will complete a ­refunding Wednesday of its $150 million floating-rate revenue bond issue from 2005, using a ­structure that provides a short-term salve for its fiscal challenges while the transit agency awaits a bump in sales tax dollars from a voter-approved increase.

CHICAGO — Iowa expects to collect nearly $300 million more in revenue during the current fiscal year than previously anticipated and projects a 3.3% increase in revenues in fiscal 2011, its revenue estimating committee announced Monday.

Fitch Ratings dropped a Lee’s Summit Industrial Development Authority issue for John Knox Village to BBB-minus — the last rung of investment-grade — due to ongoing fiscal strains.

Central DuPage Health and Delnor Health System have reached a memorandum of understanding that is expected to lead to a merger that will yield one system serving Chicago’s western suburbs.

Illinois Gov. Pat Quinn last week announced the formation of an advisory council to help with the planning and building of the Elgin-O’Hare West Bypass to expand access to O’Hare International Airport.

CHICAGO — Chicago enters the market this week with $251 million of second-lien Midway International Airport bonds to refund outstanding commercial paper and wrap up financing for a new consolidated rental car facility.

CHICAGO — Moody’s Investors Service and Standard & Poor’s have revised their outlooks on the Chicago Board of Education’s bonds to negative. They cited escalating financial challenges as the district prepares to sell $418 million of new money on Wednesday and a $243 million refunding to restructure debt next week.

Fitch Ratings dropped the Chicago Board of Education's general obligation rating one level to A-plus Thursday due to mounting fiscal challenges from state aid delays and the looming expiration of federal aid and pension relief that helped close a fiscal 2011 deficit.

Minneapolis-based Dougherty & Co. announced this week the hiring of veteran local public finance banker Jim Wenker to bolster its fixed-income banking business and mortgage divisions.

CHICAGO — Chicago-based BMO Capital Markets has hired senior public finance health care banker David Johnson and three of his colleagues from Ziegler Capital Markets for its merged higher education and health care practices, and named a fouth colleague to lead its strategy and analytics efforts.

CHICAGO — In a stark illustration of Illinois’ deteriorating balance sheet, the state ended the first quarter of fiscal 2011 with $5.5 billion in overdue bills and faces a possible structural deficit of at least $15 billion in the next fiscal year if no action is taken, Comptroller Dan Hynes warned in his quarterly report.

Milwaukee County last week sold $31.5 million of new-money revenue bonds for projects at General Mitchell International Airport and $56.3 of refunding airport revenue bonds.

The two losing bidders in Illinois’ competition to privatize the state Lottery have filed protests with the Department of Revenue asking that the state scrap its selection and reopen bidding.