Midwest

Fitch Ratings slapped a beleaguered Detroit with a downgrade to CCC Tuesday as Mayor Dave Bing ordered the city’s top lawyer to drop a lawsuit challenging the two-month old consent agreement between the city and Michigan.

The Detroit Water and Sewerage Department has pushed back a $500 million debt issue that was planned for Thursday to give officials time to work through a crippling dispute with Michigan that threatens to bankrupt the city.

Charity care is on the rise at Missouri hospitals and that increase is not expected to abate due to lower Medicaid enrollment and job losses due to the economy, according to a report released last week.

Michigan education officials last Thursday approved the Pontiac School District’s deficit elimination plan, removing the threat of a state takeover and prompting the release of $2.8 million of overdue state aid that had been withheld in April and May.

A three-member Michigan Court of Appeals Friday ruled that a petition to overturn the state’s emergency management law could go on the ballot, then immediately stayed the ruling to poll the full 28-judge appellate bench on whether to reconsider the issue.

The Michigan Senate last week passed a bill allowing the lowest-performing 5% of schools to leave their districts and be converted to so-called conversion schools, including charters.

The Michigan House last week approved a bill that will allow Detroit and 40 other local governments to create a new bond-issuing authority to manage their public lighting departments.

Proctor Hospital’s rating has sunk deeper into junk-bond territory and the Illinois health care provider could still fall further due to its ongoing operating struggles.

Dixon, Ill., has sued the city’s auditors for failing to uncover former Treasurer Rita Crundwell’s alleged embezzlement of more than $50 million.

CHICAGO — The Regional Transportation Authority of Illinois will sell $300 million of two-year working cash-flow notes Wednesday, rolling over some existing short-term paper while also raising funds to weather the state’s chronically late aid payments.