Yvette Shields

Fitch Ratings last week affirmed St. Louis-based Lutheran Senior Services’ A-minus rating but warned of the possibility of a future downgrade of the system.

Fitch Ratings upgraded to A from A-minus the Bi-State Development Agency of the Missouri-Illinois Metropolitan District’s 2002 and 2007 debt due to its improved financial condition, helped by the passage of a sale-tax rate hike.

Illinois Gov. Pat Quinn and transportation officials last week announced the start of a $98 million project to upgrade 90 miles of existing railroad track between Alton and Lincoln to prepare the line for high-speed trains.

Chicago Transit Authority president Richard Rodriguez last week said the agency plans to trim $50 million from its next budget by cutting about 70 vacant administration positions and through other measures.

CHICAGO — United Airlines and Continental Airlines Inc. are on track to close a merger on Oct. 1 that would create the world’s largest airline based on passenger volume, after shareholders endorsed the union Friday.

CHICAGO — A Minnesota judge this week kept alive a lawsuit filed by retirees against the state’s public pension funds that challenges legislation enacted earlier this year curbing benefit increases for current retirees.

CHICAGO — Illinois Gov. Pat Quinn Wednesday announced the selection of Northstar Lottery Group to privately manage and expand the Illinois Lottery. The deal is expected to raise $1.1 billion over the next five years for education and to repay bonds issued to support the state’s $31 billion capital program.

CHICAGO — The Regional Transportation Authority of Illinois board on Wednesday tapped its chief financial officer, Joe Costello, to serve as interim executive director beginning next month until a replacement for retiring director Stephen Schlickman is found.

CHICAGO — The Iowa State Board of Regents will competitively sell $20 million of debt Thursday in the final financing for the $43 million reconstruction and expansion of the Carver-Hawkeye Arena at the University of Iowa.

CHICAGO — The Illinois Finance ­Authority board advanced plans for Navistar International Corp. to borrow $145 million using recovery zone facility bonds for its new DuPage County corporate headquarters, though the financing hinges on the successful pooling of local ­government bond allocations from the stimulus program.

Moody’s Investors Service has downgraded the village of Cary’s waterworks and sewage revenue debt to Aa3 from Aa2 due to a weakening of debt-service coverage ratios. The downgrade affects $5.4 million of bonds.

A public policy group funded by local businesses wants to overhaul Illinois’ transportation policies and practices to fuel job creation and economis growth.

CHICAGO — The Regents of the University of Minnesota on Wednesday will sell $146 million of bonds in two issues to fund biomedical science research facilities. The deal will offer a mix of tax-exempt revenue debt supported by a state appropriation and taxable Build America Bonds backed by the school’s credit.

CHICAGO — Investors who hold $23 million of defaulted steam-plant bond anticipation notes, which the city of Menasha put its appropriation pledge behind, warned in their latest court filing that the municipal world is following their federal lawsuit and their claims the Wisconsin city misled potential investors.

CHICAGO — The Chicago City Council Wednesday approved up to $1 billion of new-money and refunding debt that will help the city keep its $8 billion O’Hare International Airport expansion project on track as negotiations with the airlines over upcoming projects continue.

CHICAGO – Chicago Mayor Richard Daley said Tuesday he would not seek a seventh term next year in a stunning announcement for the city’s political and business worlds that stands to shakeup its longstanding relationships in the public finance community.

CHICAGO — The Chicago City Council’s Finance Committee Tuesday advanced the sale of up to $1 billion of new-money and refunding O’Hare International Airport revenue bonds and debt backed by passenger facility charges to raise funds for the second phase of an $8 billion expansion that has yet to win airline approval.

The Regional Transportation Authority of Illinois board has elected John Gates Jr. to serve as its new chairman, filling the vacancy left by Jim Reilly who resigned in May to serve as the special trustee overseeing reforms at the Metropolitan Pier and Exposition Authority.

Mayor Richard Daley last week announced plans to consolidate several city departments as part of an effort to whittle down costs as Chicago grapples with a record $655 million deficit going into fiscal 2011.

CHICAGO — Iowa will add $25 million of taxable bonds to its planned sale of $155 million of tax-exempt special obligation bonds for its IJOBS program in order to bolster its debt-service reserve on Build America Bonds issued last year for the program and fend off a possible downgrade.