Midwest

CHICAGO — Moody’s Investors Service downgraded Akron’s general obligation and income-tax backed debt as the Ohio city struggles with a budget deficit and heads into what is expected to be a tough 2010.

CHICAGO — Ahead of the release this week of his proposed $6.2 billion 2010 budget, Chicago Mayor Richard Daley yesterday announced spending reductions and other measures to generate $114 million in savings as he seeks to close a $520 million deficit without raising taxes or fees.

CHICAGO — Minnesota today launches its first formal retail-order period for a general obligation sale before opening the $475 million issue of new-money bonds and possibly some refunding bonds to institutional buyers on Thursday.

CHICAGO — In a further reshuffling of Illinois’ finance team, debt manager Phil Culpepper will move over to the Illinois Housing Development Authority to the post of deputy executive director, while the Illinois Student Assistance Commission’s chief financial officer, John Sinsheimer, has stepped into the newly created position of state director of capital markets.

CHICAGO — As school districts’ issuance of qualified school construction bonds picks up, the market is seeing its first competitively sold transactions of the tax-credit bonds, with several Midwestern district issues done and several more — including one from Milwaukee Public Schools — on the horizon.

Moody’s Investors Service downgraded Manitowoc County’s credit one notch to A1 ahead of its sale of $5 million of note anticipation notes this week due to its pressured financial position. The action affects $21 million of debt.

The Minneapolis Special School District won a one-notch upgrade in its issuer credit rating to AA, Standard & Poor’s reward for management’s successful efforts to control spending and for the fiscal boost provided by voters who recently approved a $60 million annual levy.

Officials are looking at the possible refunding of the bulk of Detroit’s $8.4 billion in debt as one in a series of moves that a recent report said could save the cash-strapped city up to $600 million.

Traverse City last week won a two-notch upgrade on its general obligation debt from Standard & Poor’s to AA-plus from AA-minus.

Indiana Gov. Mitch Daniels last week called for another round of budget cuts after reports showed revenue collections coming in 8% below original forecast.