Midwest

St. Louis-based retail stalwart Edward Jones will drop its negotiated public finance underwriting business at the end of the year.

Illinois took its second credit blow this week when Moody’s Investors Service dropped the state’s general obligation debt into the triple-B category Thursday as the state’s prospects for tackling its budget and pension mess dim amid the four-month-old budget stalemate.

Moody's Investors Service said it has downgraded the state of Illinois' $26.8 billion of general obligation bonds to Baa1 from A3, while also lowering ratings on the state's sales-tax (Build Illinois) bonds to Baa1 from A3, and on the state's subject to appropriation bonds (issued by the Metropolitan Pier and Exposition Authority and for the state's Civic Center program) to Baa2 from Baa1.

Allen Park, Mich., has delayed the settlement date for its purchase of $11.2 million of the $26.3 million of bonds offered to tender from a troubled issue for a failed movie studio project.

With the Illinois state budget impasse blocking only a limited number of revenue sources, most local governments in the state should be able to get by without an immediate ratings impact bond structures that include covered abatements and adequate liquidity and reserves.

Wisconsin Gov. Scott Walker is urging state lawmakers to sign off on $200 million of general obligation borrowing for transportation-related projects that face delays without the infusion of funds.

Local credits in Michigan will be hurt if a proposal to give their unlimited tax general obligation bonds a statutory first lien falls through, Fitch Ratings said in a special report.

Investors should brace for further deterioration of Illinois’ already battered bond ratings after this week’s Fitch Ratings downgrade.

Michigan Gov. Rick Snyder says his $715 million restructuring plan for Detroit’s school system is less expensive for the state than doing nothing.

Fitch Ratings downgraded Illinois one notch to BBB-plus.