Pennsylvania

Moody’s Investors Service has downgraded Allentown’s underlying general obligation rating to A2 from A1, affecting $100 million of parity-related debt. The outlook remains negative.

While Pennsylvania officials prepared to implement a takeover of Harrisburg after a deadline passed for the city to submit a recovery plan, another domino fell in the capital city.

The attorney representing the Harrisburg City Council in its bankruptcy filing is asking the Internal Revenue Service and the Securities and Exchange Commission to investigate the financing of the incinerator renovation project that left Pennsylvania's capital city with $310 million of bond debt and on the cusp of a state takeover.

The city that envelops it is a financial mess, but Harrisburg Area Community College had Standard & Poor's affirm its bond rating at A, with a stable outlook. "The Harrisburg name is not a taint on the credit quality of all related issuers," Janney Capital Markets said in a report.

The bond insurer for Harrisburg, Pa.'s troubled incinerator renovation project has rejected a request from the city to forgive $100 million of debt.

The attorney representing the Harrisburg, Pa., City Council in its bankruptcy filing said his endgame is to pay bondholders in full.

Pennsylvania Sen. Jeffrey Piccola, who in the past year has sponsored legislation to put Harrisburg under state control and restrict its bankruptcy options, may no longer have parts of the capital city in his district.

An arbitration award that ends minimum staffing levels for firefighters could save Bethlehem, Pa., about $1 million annually, according to the city's mayor.

Financially strapped Harrisburg wants all sides, including bondholders, to make concessions, the mayor of Pennsylvania's capital city said Wednesday.

A bankruptcy judge in Harrisburg said Tuesday that special court approval for payments to vendors is unnecessary in Pennsylvania's capital city.

Harrisburg, Pa., Mayor Linda Thompson has requested that the judge overseeing the City Council's bankruptcy filing authorize expenses to vendors.

Pennsylvania Gov. Tom Corbett has announced the investment of $84 million in 18 non-point source, drinking water, and wastewater projects in 14 counties.

Auditor general Jack Wagner called for increased investment in Pennsylvania’s crumbling roads and bridges, echoing suggestions made by Gov. Tom Corbett’s advisory commission over the summer.

Harrisburg's City Council will hold a special meeting at 6 p.m. Monday with Mayor Linda Thompson and Pennsylvania officials to discuss recently enacted legislation authorizing a state takeover of the city.

Standard & Poor’s lowered its long-term rating on the Philadelphia Hospitals and Higher Education Facilities Authority’s revenue bonds, issued for Temple University Health System, to BBB-minus from BBB.

Pennsylvania completed an $811.6 million general obligation bond sale on Tuesday, obtaining what Budget Secretary Charles Zogby called one of the state’s lowest interest rates ever.

Moody’s Investors Service has placed the Ba3 rating on the Harrisburg Parking Authority’s $18 million of outstanding guaranteed Series 2007T revenue bonds on review for possible downgrade.

Pennsylvania's House Wednesday passed a bill that would allow Gov. Tom Corbett to declare a state of fiscal emergency in the capital, Harrisburg, and appoint a receiver to run its finances.

Pennsylvania's Senate on Tuesday afternoon approved a bill to put its capital, Harrisburg, into receivership.

A judge on Monday placed the Chapter 9 bankruptcy filing by Harrisburg's City Council on hold for a month, while a few blocks away in Pennsylvania's capital, lawmakers continued their push for a state takeover of the struggling city.