Midwest

CHICAGO — After spending the week in a heavy marketing campaign that includes international buyers, Illinois on Thursday or Friday will price nearly $3.5 billion of taxable general obligation bonds with a five-year maturity to help cover its fiscal 2010 pension payments.

CHICAGO — Standard & Poor’s has upgraded 10 local borrowers that have issued debt through the Michigan Transportation Fund — boosting most of them to top AAA marks— primarily due to high debt-service coverage.

Standard & Poor’s last month revised its outlook to stable from negative on Decatur Memorial Hospital’s A credit due to the restoration of profitability.

Fitch Ratings has upgraded the Northwestern Medical Faculty Foundation’s rating to A-plus from A in recognition of its sustained operating profitability and positive volume trends.

CHICAGO — A Minnesota judge last week ruled that budget cuts ordered by Gov. Tim Pawlenty last summer were unconstitutional — a ruling that could have a big impact on the state’s current $57 billion budget and on how lawmakers tackle a fresh $1.2 billion deficit heading into 2010.

CHICAGO — As the largest buyer of qualified school construction bonds, Guggenheim Partners LLC has purchased a piece of nearly every QSCB issue since the federal stimulus act launched the new type of tax-credit bond earlier this year.

CHICAGO — Ohio plans to enter the market next week to refund $271 million of general obligation debt in a transaction that is expected to save the struggling state up to $740 million over the next two years.

CHICAGO — Gov. Jennifer Granholm said she will consider revamping Michigan’s tax structure next year as the state finishes what she called one of the worst years in its history.

Ohio Gov. Ted Strickland last week signed a bipartisan agreement that avoids dramatic school funding cuts by delaying a 4.2% income tax cut to help plug an $850 million budget shortfall in education funding.

The St. Louis County Council earlier this week approved putting a half-cent sales tax increase for the Metro transit agency on the April ballot.