Yvette Shields

CHICAGO — Moody’s Investors Service placed on negative watch five Wisconsin school districts involved in a risky investment to help fund their other post-employment benefits. The move follows Depfa Bank Plc’s decision last month to demand repayment of notes issued to fund the investment.

CHICAGO — As Illinois prepares to offer investors $1.3 billion of general obligation bonds, the pressure on its credit ratings escalated this week with one agency downgrading the state and two warning that further action looms if lawmakers again turn to one-time measures to balance the budget.

CHICAGO — Moody’s Investors Service yesterday downgraded O’Hare International Airport’s passenger facility charge-backed bonds to A2 from A1 ahead of Chicago’s sale in mid-April of roughly $1.3 billion of new-money and refunding airport-related bonds.

The Missouri Highways and Transportation Commission last week announced the resignation of Pete Rahn as head of the Missouri Department of Transportation.

The Illinois State Toll Highway Authority last week picked Kristi Lafleur, a close aide of Gov. Pat Quinn, to become its new executive director.

Standard & Poor’s last week stripped Proctor Hospital of its investment-grade rating, downgrading the facility to BB-plus from BBB-minus due to three years of declining operations that have hurt its debt-service-coverage ratios.

CHICAGO — Principal and interest on $14.5 million of bonds issued in 2002 for a Joliet Junior College housing project in Illinois is now due, after bondholders frustrated with the project’s failure to make timely interest payments since 2005 triggered the payment-acceleration provision in the bond indenture last week.

CHICAGO — Fitch Ratings late Monday downgraded Illinois’ general obligation rating one notch to A-minus and warned of possible further action by leaving the state’s credit on negative watch ahead of $1.3 billion of short- and long-term GO issuance in three deals over the coming weeks.

CHICAGO — Illinois Gov. Pat Quinn Thursday said he is hoping rating agencies look favorably on pension reform legislation approved this week as the state seeks to fend off any further downgrades and improve its market image with three sales of $1.3 billion of general obligation bonds planned over the next month.

CHICAGO — Depfa Bank Plc has formally demanded repayment of its $165 million loan to five Wisconsin school districts, calling on them to make good on their moral obligation pledge to repay the funds used to establish trusts to help pay other post-employment benefit liabilities.

CHICAGO — Legislation that would allow Illinois’ eight public universities to issue short-term debt to manage through the state’s chronic payment delays ­advanced this week towards a House floor vote.

Standard & Poor’s has revised its outlook to negative from stable on Lake Region Healthcare Corp.’s A-minus rating due to strain on its balance sheet. Bonds for the provider were sold in 2002 through the Fergus Falls Housing and Redevelopment Authority.

Standard & Poor’s late last week said Provena Hospitals’ BBB-plus rating would not be affected by the Illinois Supreme Court decision upholding a ruling that cost Provena Covenant Medical Center its property tax exemption because it failed to provide sufficient charity care.

The Illinois Senate last week approved a bill that would establish the Illinois and Midwest High Speed Rail Commission to oversee initial planning for high-speed rail service. The legislation is expected to be approved by the House and signed by Gov. Pat Quinn.

CHICAGO — A Kansas City, Mo., task force picked Piper Jaffray & Co. over three other finalists to help develop a financing plan as the city weighs whether to pursue construction of a $300 million hotel to support its downtown convention center.

CHICAGO — The Minnesota Public Facilities ­Authority today will take bids on $380 million of new-money and ­refunding state revolving fund bonds, including taxable Build America Bonds, to finance clean water and drinking water loans in a deal that will establish a new modernized indenture.

CHICAGO — After dipping deeply into reserves to balance its 2009 and 2010 budgets, financially strapped Chicago is asking the public finance community for help in coming up with “creative ideas” to raise revenue or cut costs.

CHICAGO — The Illinois Supreme Court yesterday upheld an appellate court decision supporting the state’s decision to strip Provena Covenant Medical Center in Urbana of its property tax exemption because it failed to provide sufficient charity care in a case that has garnered national attention.

CHICAGO — St. Louis County will competitively sell $123 million of special obligation tax-exempt bonds and taxable Build America Bonds on Tuesday to fund a new county-wide emergency communications system.

CHICAGO — Two rating agencies delivered good news to Rochester, Minn.-based Mayo Clinic this week in recognition of its fitter financial profile, including improved investment returns and revisions to its defined pension plan that lowered its liabilities.