Yvette Shields

CHICAGO — Moody’s Investors Service this week lowered Kimberly Area School District’s general obligation debt one notch to Aa3, making it the third district to suffer a downgrade after reneging on a moral obligation pledge to repay asset-backed notes issued by their non-pension retiree health care trusts.

CHICAGO — Fitch Ratings on Monday downgraded more than $220 million of general airport revenue bonds issued for Kansas City International Airport by one notch due to a decline in debt-service coverage ratios and increased exposure to non-airline related revenues.

CHICAGO — Branson Airport LLC dipped into reserves to cover its July 1 debt-service payment on $113 million of unrated tax-exempt bonds as it struggles to meet traffic projections for the privately built and operated Missouri facility.

The credit quality of Iowa school districts is not expected to suffer as they deal with mid-year state aid cuts, Moody’s Investors Service said last week in a special report.

Chicago Mayor Richard Daley last week proposed allocating $98 million in tax-increment financing assistance to support the transformation of the shuttered U.S. Steel Corp.’s South Works plant along the south shore of Lake Michigan into a new mixed-use community.

Fitch Ratings last week downgraded Chicago’s motor-fuel tax bonds one notch to A-minus and assigned a negative outlook due to the rating’s link to Illinois’ credit.

CHICAGO — St. Louis voters will cast ballots Tuesday on a $155 million bond referendum to finance improvements at the city’s public schools.

CHICAGO — Chicago faces a record $654.7 million deficit as work begins in earnest on a $6.3 billion 2011 budget, while expectations of a slight improvement in revenue collections can’t keep pace with growing ­personnel costs.

CHICAGO — Philadelphia-based PNC Capital Markets this month expanded its public finance banking presence to Illinois with the hiring of Walter Stock in Chicago.

CHICAGO — St. Louis-based Stern Brothers has hired Adam Pierce to strengthen its alternative energy and power practice as part of an ongoing national expansion of its public finance business.

CHICAGO — All five southeastern Wisconsin school districts involved in a failed investment scheme tied to funding their non-pension retiree health care trusts are reneging on their moral obligation pledge to repay asset-backed notes issued by the trusts and sold to Depfa Bank Plc.

CHICAGO — Chicago is planning three new-money and refunding general obligation and revenue bond sales totaling up to $2 billion to take advantage of the taxable Build America Bond program ahead of its scheduled expiration year end.

Moody’s Investors Service revised its outlook to stable from negative on Wheaton Franciscan Services Inc.’s Baa2 rating, citing progress in turning around its financial performance.

The 25-year-old St. Louis Science Center last week announced plans to construct a $9.5 million exhibition hall to replace the temporary Exploradome space.

Moody’s Investors Service has downgraded Rockford’s general obligation rating to Aa3 from Aa2 ahead of its sale of $3.4 million of unlimited-tax alternative revenue source GOs.

CHICAGO — CIFG Assurance North America Inc. on Monday sued Assured Guaranty Corp., charging it with breach of contract violations for reneging on its obligation to cover the policy on $83.3 million of Xenia Iowa Rural Water District bonds as part of its 19-month-old reinsurance agreement.

CHICAGO — CIFG Assurance North America Inc. Monday sued Assured Guaranty Corp., charging it with breach of contract violations for reneging on its obligation to cover the policy on $83.3 million of Xenia Rural Water District bonds as part of its 19-month-old reinsurance agreement.

CHICAGO — Closing arguments are scheduled to begin Monday morning in the federal corruption trial of former Illinois Gov. Rod Blagojevich after his defense rested its case last week without calling him to the stand.

CHICAGO — The Regional Transportation Authority of Illinois will receive $442 million in long-awaited state bonding proceeds for capital projects, representing the first installment of $2.7 billion of transit funding in the state’s capital budget, Gov. Pat Quinn announced Thursday.

CHICAGO — The managers of the bondholder-owned St. Louis convention center hotel complex presented a more upbeat revenue forecast for the facilities in a financial update last week, according to a new investor notice.