Midwest

Illinois set the last week of June for its planned sale of $1.25 billion of new-money under its battered general obligation credit and demand for project funding is too great to pull the sale over negative headwinds said John Sinsheimer.

After Indiana dropped support for a controversial $1.8 billion fertilizer plant, Posey County in Indiana said it would act as conduit issuer for bonds to help the Pakistani-based company close the deal.

Detroit emergency manager Kevyn Orr will hold his first formal meeting with the city's creditors, including bondholders, June 14 at Detroit Metro Airport.

Missouri Gov. Jay Nixon vetoed a gradual $700 million to $800 million tax cut approved by the Legislature, calling the plan irresponsible and harmful to the state's budget and economy.

Illinois Gov. Pat Quinn called a special legislative session for June 19 to try to break the gridlock on pension reform that prompted the second blow to the state's already weak general obligation rating Thursday.

Moody's Investors Service late Wednesday downgraded Detroit Public Schools, now in its fifth year of state oversight, and the Pontiac City School District, located outside Detroit, which defaulted on a May debt-service payment.

The Chicago City Council ratified revisions to the much-maligned 75-year parking meter lease that Mayor Rahm Emanuel promoted as cutting the city's long-term penalties for lost parking revenue to the private meter operators.

The Michigan Senate Majority Leader delayed until Tuesday a vote on a measure that would protect the Detroit Institute of Arts' collection from the city's financial problems amid questions from his Republican colleagues.

Fitch Ratings lowered Chicago's motor fuel tax revenue bond credit one notch ahead of the a planned $100 million refunding issue, in a move triggered by the agency's downgrade of Illinois.

A pair of Summit County senators have introduced legislation that aims to restrict the ability of national conduit issuers to float bonds on behalf of local economic development projects.