News and Information from Bond Buyer

Week Of January 4 Issuer St Description Amount

ILLINOIS

The Philadelphia School District was downgraded five notches Tuesday night as a result of Moody’s Investors Service adopting a new rating approach to Pennsylvania State Aid Intercept Program.

Government

Pennsylvania neared the end of its budget stalemate Wednesday, only to see momentum halted by opposition in the House of Representatives to proposed pension system changes and new taxes just hours before Christmas Eve.

Bills introduced by Senate and House Democrats on Monday to temporarily halt litigation over Puerto Rico debt raise legal issues and could divide rather than unite lawmakers over a solution to the territory’s debt crisis, sources said on Wednesday.

Top quality municipals were unchanged on Wednesday, traders said, as the market quietly worked through the last full session of the week.

Government

Respondents to an annual SIFMA survey predict total municipal issuance will hit $431.5 billion next year, while they predict that the federal funds rate will rise to 1% by the end of 2016.

Kentucky legislators are expected to focus on keeping promises to the state’s retirees as they manage massive pension burdens and attempt to protect the state's credit ratings next year.

Standard & Poor's dropped Georgia's Oconee Regional Medical Center further into junk territory citing default as a "virtual certainty."

Standard & Poor's Ratings Services said it affirmed its A-minus rating on Illinois' general obligation bonds.

Top quality municipals were weaker at mid-session traders said, as the market was quietly working through the last full session of the week.

The Treasury Department Wednesday auctioned $13 billion of one-year 10-month floating rate notes with a high discount margin of 0.330%, at a 0.168% spread, a price of 99.698968.

The new five-year federal transportation funding law has opportunities as well as some limits for P3 project financing.

Moody's Investors Service has downgraded the school district enhancement programs of the commonwealth of Pennsylvania (Aa3 negative) to Baa1, and changed its approach to rating pre-default enhancement programs in the commonwealth.

Indicator Last Report Forecast Actual Durable Goods Oct.: +2.9% Nov.: -0.6% Nov.: unch ex-Trans Oct.: +0.5% Nov.: unch Nov.: -0.1% Personal Income Oct.: +0.4% Nov.: +0.2% Nov.: +0.3% Consumption Oct.: unch Nov.: +0.3% Nov.: +0.3% Michigan Sentiment Nov.: 93.1 Dec.: 92.0 Dec.: 92.6 Current Conditions Nov.: 104.3 Dec.: 106.5 Dec.: 108.1 Expectations Nov.: 82.9 Dec.: 82.0 Dec.: 82.7 New Home Sales Oct.: 470,000 Nov.: 505,000 Nov.: 490,000

The new five-year federal transportation funding law has opportunities as well as some limits for P3 project financing.

The University of Michigan's final December consumer sentiment index reading was 92.6, compared to the preliminary December 91.8, and the final November 93.1, according to market sources.

Sales of new single-family homes grew 4.3% to a 490,000 seasonally adjusted annual rate in November, according to data released by the Commerce Department Wednesday.