Midwest

CHICAGO — Moody’s Investors Service on Thursday warned Illinois that its A1 general obligation rating is at risk for a downgrade due to escalating strains from massive pension obligations, reliance on one-times revenues, and an increasing debt load amid a fragile economic recovery.

CHICAGO — A federal bankruptcy court judge on Tuesday approved Senior Care Development LLC’s $40 million bid to purchase two Chicago area bond-financed continuing care retirement communities although the size of a final payout for bondholders remains unclear.

CHICAGO — The Chicago Board of Education on Wednesday paved the way for a Chicago Public Schools sale of up to $800 million of new-money and refunding general obligation debt and qualified school construction bonds as soon as next month to help pay for the 2011 capital budget and ease an operating deficit.

CHICAGO — North Dakota continues to buck national trends, with officials this week reporting that revenues collected in the current biennium have exceeded projections and that the state is on track to see a $700 million surplus by next June.

CHICAGO — Indiana voters in November are expected to approve a ballot measure to make the state’s property-tax caps permanent — a move some local officials say could deepen the chill on local government borrowing that’s settled over the state since the caps were enacted in 2008.

CHICAGO — Triple-A rated Madison, Wis., today will competitively price $110.7 million of debt that features five series, most of which are taxable general obligation promissory notes.

CHICAGO — The South Dakota Housing Development Authority is offering homebuyers the lowest interest rate in its history, thanks to recent changes in the federal New Issue Bond Program.

CHICAGO — A Minnesota judge this week kept alive a lawsuit filed by retirees against the state’s public pension funds that challenges legislation enacted earlier this year curbing benefit increases for current retirees.

CHICAGO — Detroit-based law firm Lewis & Munday PC has been on a small hiring spree since last year and has opened an office in New York with an eye on Connecticut.

CHICAGO — Illinois Gov. Pat Quinn Wednesday announced the selection of Northstar Lottery Group to privately manage and expand the Illinois Lottery. The deal is expected to raise $1.1 billion over the next five years for education and to repay bonds issued to support the state’s $31 billion capital program.