Minnesota

The Minnesota Supreme Court released an opinion Wednesday finding that the state’s use of an appropriation pledge to back a proposed tobacco refunding issue does not constitute a “public debt” subject to state limits on such debt.

The top- Metropolitan Council enters the market this week to refund some debt and raise $100 million in interim financing for its $957 million light-rail line that will link the downtowns of Minneapolis and St. Paul.

Moody’s Investors Service lowered Monticello, Minn.’s rating due to the city’s declining financial position due in part to its support of its telecommunications utility.

The Minneapolis-St. Paul Metropolitan Airports Commission is gearing up to sell about $100 million of general airport revenue as it advances plans for a $1.5 billion capital improvement program.

Moody's Investors Service lowered its rating by three notches to A3 from Aa3 and assigned a negative outlook to Brainerd, Minn.'s $8.9 million of outstanding electric utility revenue bonds. The city issued the debt in 2007. The bonds are secured by net revenues of the electric utility.

The Minnesota Office of Higher Education will price $375 million of new-money and refunding adjustable rate student loan program bonds Tuesday.

Minnesota last week awarded $25 million in state bond grant funding to help build a new $54 million ballpark in St. Paul's Lowertown for the Saint Paul Saints baseball team.

A Minnesota city that voted late last month to cancel its lease and financial support for a struggling sports complex paid a steep price for its action in the loss of its investment grade rating even though the city contends it was simply exercising its legal rights.

Moody's Investors Service has upgraded Allina Health System's rating by one notch to Aa3 in recognition of its favorable fiscal performance.

Moody's Investors Service raised its rating by one notch to A1 on CentraCare Health System's debt due to the Minnesota-based system's strong financial performance.

While it may have relied heavily on one-time revenues to end political gridlock and strike a budget agreement last year, Minnesota maintains strong financial policies and has a solid track record of making timely budget adjustments as needed, Standard & Poor's said in a special report.

St. Louis-based Ascension Health Alliance is advancing plans to acquire Oklahoma-based Marian Health System, the parent of three regional not-for-profit healthcare organizations in the mid and central states.

The merger of HealthPartners Inc. with Park Nicollet Health Services won't have an immediate impact on the ratings of either system, Standard & Poor's said in a report.

The fate of Minnesota's proposed tobacco refunding is in the hands of the state's high court which is being asked to decide whether the use of an appropriation pledge constitutes a "public debt" that is subject to state limits on the uses of such debt.

Minnesota will draw from reserves and bond proceeds to help fund a $167.5 million relief package approved by lawmakers Friday for areas hard hit by June storms and flooding.

Lured by attractive Treasury rates and the absence of tax-exempt compliance, the Mayo Clinic is accelerating its new-money borrowing plans and opting to go with taxable paper in a $300 million issue pricing as soon as this week.

The Minnesota Legislature is tentatively planning to meet for a special session on Aug. 24 to approve aid for the flood-ravaged Duluth area.

Minnesota's HealthEast Care System won back its investment grade rating last week from Standard & Poor's in recognition of its improving balance sheet.

Minnesota takes competitive bids Tuesday on $658 million of high-grade general obligation bonds in its annual sale to fund capital projects.

Minnesota enters the market next week with a small, but rare, revenue issue for refunding savings and plans to return on Aug. 8 with $658 million of new-money general obligation bonds. Both are competitive issues.