Illinois

CHICAGO — Illinois’ state universities should have sufficient liquidity to meet their fiscal obligations, at least through November, under a newly approved power to borrow against late state payments and an infusion of tuition revenue expected in late August, Moody’s Investors Service reported in its latest credit outlook.

CHICAGO — The Chicago Board of Education yesterday voted during an emergency meeting to authorize the establishment of an $800 million line of credit to boost its liquidity as it grapples with late aid payments and uncertainty over state funding levels in fiscal 2011.

CHICAGO — Illinois’ general obligation rating slid further down the scale on Friday when Fitch Ratings downgraded the state to A from A-plus, blaming leaders’ failure to tackle the state’s fiscal and liquidity crisis in the next budget.

CHICAGO — Former Illinois Gov. Rod Blagojevich and several associates expected to reap $500,000 from an $809,000 consultant’s fee paid by Bear, Stearns & Co. for its role as book-runner on the state’s $10 billion 2003 pension bond sale, an aide said in testimony this week during the disgraced ex-governor’s federal corruption trial.

CHICAGO — The Illinois Finance Authority board this week gave final approval to deals for OSF Healthcare System and NorthShore University Health System that will raise new money for each and shift outstanding variable-rate debt to fixed rate to reduce market and liquidity risks.

CHICAGO — The Illinois State Toll Highway Authority will enter the market as soon as tomorrow with roughly $400 million of fixed-rate refunding bonds, the first of two sales planned this year to restructure a chunk of the agency’s synthetically fixed-rate debt to reduce bank and liquidity risks.

CHICAGO — Gov. Pat Quinn yesterday signed legislation that allows Illinois’ nine public universities to issue short-term debt in anticipation of state aid to help the schools manage through the state’s chronic payment delays.

CHICAGO — Cook County, Ill., on Wednesday and Thursday will price $1.05 billion of new-money and refunding bonds divided into five series in a transaction that likely marks the last issue under county board president Todd Stroger’s watch.

CHICAGO — Fitch Ratings’ Chicago-based lead Midwestern analyst of tax-supported government credits, Melanie Jopek Shaker, resigned last week to take a newly created position with the fiscally stressed Chicago Public Schools as its deputy chief financial officer.

CHICAGO — For Illinois, Build America Bonds are the gift that keeps on giving despite heightened federal scrutiny, the state’s debt manager said last week.

CHICAGO — Moody’s Investors Service Friday downgraded Illinois’s general obligation debt to A1 from Aa3, saying infighting among the state’s leaders has led to ongoing budget delays, erosion of finances, and a severe pension funding gap.

CHICAGO — The Illinois General Assembly adjourned late last week after passing a fiscal 2011 budget that chips away at a $13 billion deficit primarily with one-time maneuvers — including a $1.7 billion tobacco bond financing — and by pushing off $6 billion in bills while leaving a $3.7 billion hole.

CHICAGO — The Illinois State Toll Highway Authority plans in early to mid-June to sell $400 million of refunding bonds as it moves to shift a chunk of synthetic floating-to-fixed-rate debt to a traditional fixed-rate structure to reduce bank and liquidity risks.

CHICAGO — Ohio next week will price $20 million of taxable revenue bonds backed by profits from the state’s liquor sales, a revenue source unscathed by the recession.

CHICAGO — Putting aside partisan bickering over a fiscal 2011 budget, Illinois senators today will unite to vote on an override of Gov. Pat Quinn’s veto of a Metropolitan Pier and Exposition Authority reform bill that allows the agency to restructure its $2 billion of debt.

CHICAGO – In its second try yesterday, the Illinois House late Tuesday narrowly approved Gov. Pat Quinn’s proposal to issue $4 billion of general obligation bonds to cover the state’s fiscal 2011 pension payment.

CHICAGO — With Illinois behind a record $290 million in payments to the Regional Transportation Authority, the agency is awaiting Gov. Pat Quinn’s signature on a bill that would allow it to issue an additional $140 million of taxable cash-flow notes to keep Chicago-area trains and buses running.

CHICAGO — Chicago plans to sell about $175 million of general obligation bonds next month to provide an infusion of funding for school building projects at the cash-strapped Chicago Public Schools to help keep its long-term $5 billion capital program on track.

CHICAGO — While Illinois lawmakers temporarily adjourned last week without passing a fiscal 2011 budget, they did approve legislation establishing a commission that will lead the initial planning effort for a regional high-speed rail system.

CHICAGO — The University of ­Chicago is watching the market closely, hoping to sell $300 million of taxable fixed-rate bonds this week or next to raise funds for capital projects and restructure debt from a bank line of credit.