Midwest

Moody's Investors Service has placed Meriter Hospital's A1 rating under review for downgrade as the system struggles with 2012 operating losses due to the Meriter Health Services' health insurance plan.

The Court of Appeals in Kansas City will hear oral arguments next month as several Kansas City, Mo., business owners try to keep alive their lawsuit challenging the legality of the funding mechanism for the city's downtown streetcar line.

The Michigan Court of Appeals Friday blocked an Ingham County judge's order that an aide to Gov. Rick Snyder turn over the names of all candidates for the Detroit emergency manager position.

Fitch Ratings downgraded to D from C the rating on $1.5 billion of pension obligation certificates of participation issued by Detroit in 2005 and 2006. The downgrade comes after Detroit missed a $39.7 million pay due on the COPs last Friday.

Michigan attorney general Bill Schuette issued a formal opinion arguing that the Detroit Institute of Art's prized art collection is off limits to creditors or Detroit officials struggling to cover the city's debt because it is held in a charitable trust.

Moody's Investors Service pushed the struggling Proctor Hospital's rating further down into junk bond territory, lowering the Illinois hospital three levels and warning of further deterioration.

Detroit's plan to treat all $11.4 billion of unsecured debt the same is aggressive and would set a precedent in the market, analysts said.

Detroit's decision to default on its unsecured debt could be an opportunity for the city's bond insurers to prove their importance in the market.

After a failed stab at asking state lawmakers to extend a teacher pension payment holiday, Chicago Public Schools announced a new round of cuts Friday as the district carves away at a $1 billion deficit in its next budget.

Detroit’s announcement Friday that it will default on some of its bonds, including a $39.7 million pension certificate payment due Friday, could have major repercussions for the municipal market, analysts and bond attorneys said.