Michigan

Moody's Investors Service pushed Detroit further down into junk-bond territory over escalating political risks that challenge the beleaguered city's ability to give its fiscal consent agreement with Michigan enough time to stabilize the city's finances.

An Ingham County, Mich., Circuit Court judge threw out a lawsuit challenging Detroit's consent agreement with Michigan, allowing the city to narrowly avert a cash crisis that threatened its ability to make a Friday bond payment.

CHICAGO – Standard & Poor’s said in a special report Wednesday that its B rating on Detroit’s limited-and unlimited-tax bonds remains unchanged following an Ingham County, Mich., Circuit Court judge’s dismissal of a lawsuit challenging the city’s consent agreement with Michigan.

Fitch Ratings slapped a beleaguered Detroit with a downgrade to CCC Tuesday as Mayor Dave Bing ordered the city’s top lawyer to drop a lawsuit challenging the two-month old consent agreement between the city and Michigan.

The Detroit Water and Sewerage Department has pushed back a $500 million debt issue that was planned for Thursday to give officials time to work through a crippling dispute with Michigan that threatens to bankrupt the city.

Michigan education officials last Thursday approved the Pontiac School District’s deficit elimination plan, removing the threat of a state takeover and prompting the release of $2.8 million of overdue state aid that had been withheld in April and May.

A three-member Michigan Court of Appeals Friday ruled that a petition to overturn the state’s emergency management law could go on the ballot, then immediately stayed the ruling to poll the full 28-judge appellate bench on whether to reconsider the issue.

The Michigan Senate last week passed a bill allowing the lowest-performing 5% of schools to leave their districts and be converted to so-called conversion schools, including charters.

The Michigan House last week approved a bill that will allow Detroit and 40 other local governments to create a new bond-issuing authority to manage their public lighting departments.

CHICAGO — Michigan starts the week off with a three-day pricing of a $3.3 billion unemployment-obligation assessment revenue bond issue in the largest deal of the year so far.

Michigan officials said that an upcoming bond deal that is critical to keep Detroit's finances stable will be derailed if city officials proceed with a lawsuit challenging the city's recent consent decree with the state.

CHICAGO — Michigan legislators Tuesday sent Gov. Rick Snyder the final piece of a $48.2 billion all-funds fiscal 2013 budget that reflects the state’s stabilizing fiscal position.

Detroit's corporation counsel has asked the Michigan Court of Claims to overturn the consent decree recently inked between the state and city that allowed Detroit to avoid an emergency takeover.

Federal transportation officials said they want additional information before committing funds to a proposed light-rail line financed by private investors along one of Detroit's main thoroughfares.

CHICAGO — Michigan Gov. Rick Snyder is reportedly close to reaching a final agreement with Canada on a long-stalled $4 billion trade bridge spanning the Detroit River at the nation’s busiest trade route.

Fitch Ratings downgraded $3 billion of Detroit's sewer bonds as the city prepares to enter the market with a new-money issue in mid-June, in part to cover the expense of terminating costly interest-rate swaps.

The Detroit City Council last week approved a $1.12 billion fiscal 2013 budget that largely adheres to Mayor Dave Bing’s proposed spending plan.

Fitch Ratings last week stripped the Detroit suburb of Taylor of its investment-grade rating and warned of further action by assigning a negative outlook.

Michigan has set June 14 for the sale of $3.3 billion of bonds that the state will use to defease short-term debt issued in late December to pay off its federal unemployment liability.

CHICAGO — Michigan officials are putting the final touches on a fiscal 2013 budget that will likely mark the state’s first contribution since the early 1990s to prefund its towering retiree health care liability.