Michigan

The $82.5 billion fiscal 2025 budget includes the final tranche of Rebuilding Michigan Plan bonds.

Brodie Killian has moved to PFM from Stifel Nicholas & Co., joining its Ann Arbor office as a director.

S&P's upgrade to BBB from BB-plus follows a March upgrade from Moody's Ratings, bringing the city to investment grade a decade after its historic bankruptcy.

"What we saw in 2023 was a large surge of issuers coming back into the single-family bond market," said Kurt van Kuller of Sit Investment Associates.

The loan is part of an Inflation Reduction Act program that finances the restart of renewable energy projects that have ceased operations.

Moody's Ratings hiked Detroit's issuer and general obligation unlimited tax bond ratings to Baa2 from Ba1, a milestone for the formerly bankrupt city.

Larger deals, fewer issues: those were the overarching municipal bond sale trends, along with a surge in tax-exempt deals, across the Midwest in 2023.

Lansing's Board of Water and Light is issuing $350 million of tax-exempt bonds in a deal that would fund a tender offer for $232.6 million of outstanding debt.

Bonds used to buy eight senior living properties in Michigan and Ohio are likely to default within six months, S&P Global Ratings said.

The muni market saw $379.992 billion of debt issued in 2023, only $11.076 billion less than the lackluster $391.068 billion seen in 2022.

Michigan is paying down debts of six local school districts – two of which have closed or merged with neighbors – including outstanding bond balances.

The deal has new-money and refunding components and is expected to hit the market in a negotiated sale the week of Nov. 13.

October's total volume rose 29.3% to $37.156 billion in 661 issues from $28.738 billion in 614 issues a year earlier. New-money grew more than 30% while refundings were up by nearly 75%.

Gov. Gretchen Whitmer chose Jen Flood, her deputy chief of staff, to replace Chris Harkins who is leaving state government later this year.

Although the strike shouldn't "have significant adverse revenue consequences for Michigan or its local governments, it nevertheless highlights longer-term challenges for a state that is still disproportionately exposed to the domestic auto and auto parts industries," Moody's says.

The city cites stronger tax collections, continued economic growth and stability, and revenue sharing increases provided in the state budget.

The EPA failed to follow an escalation policy that was crafted in the wake of the water crisis in Flint, Michigan.

Despite this, August saw the largest monthly volume of 2023, helped by several billion-dollar deals and multiple Texas school district deals.

Issuers in the Midwest sold $32.6 billion of debt spread over 1,223 deals in the first half, down from $40.5 billion a year earlier.

The State Trunk Line Fund deal is the latest to fund the state's $3.5 billion bond authorization for highways. After this deal $700 million remains.