News and Information from Bond Buyer

The probability of a Puerto Rico default that would cause “substantial” losses “is approaching 100%,” Moody’s Investors Service said.

Government

Standard & Poor's Ratings Services today placed its ratings on certain maturities of Tobacco Settlement Financing Corp.'s asset-backed bonds series 2015A on CreditWatch with negative implications.

Michigan Gov. Rick Snyder declared Wayne County, home of Detroit, to be in a financial emergency, just one day after a state review team made the recommendation.

The Illinois Senate president called on Gov. Bruce Rauner to offer a new, balanced budget for fiscal 2016, warning that, without action, the state’s battered credit faces a further hit.

The Detroit suburb of Allen Park is considering tendering $31 million of troubled bonds that have led to general fund deficits, a state takeover and federal securities fraud charges.

Prices of top-rated municipal bonds closed stronger, traders said, as yields on some maturities fell by as much as four basis points. In the primary, muni traders saw a second wave of new supply hit the market, with large deals from New York, Hawaii, Texas and Florida being priced.

Washington state will be among the biggest beneficiaries of Medicaid changes under the Affordable Care Act, according to a new report from Fitch Ratings

Worsening investment performance threatens the long-term viability of the Dallas Police and Fire pension fund and could harm the city's credit, according to Moody's Investors Service.

New York's Metropolitan Transportation Authority, which needs up to $14 billion to plug a gap in its proposed five-year capital plan, receives an encouraging signal from City Hall.

Tampa International Airport on Florida's west coast benefits from major financings this week and in August to support its largest capital plan in more than four decades.

Standard & Poor's Ratings Services said it raised its long-term rating to A-plus from A on St. Ignace Building Authority, Mich.'s series 2011 general obligation bonds issued for the city of St. Ignace.

Rep. Tom Reed, R-N.Y., and Sen. David Vitter, R-La., have introduced bipartisan disaster tax relief bills that include several bond provisions.

House leaders from both parties say the Senate should drop a multiyear bill and adopt a short-term HTF extension.

Illinois debt manager Jessica Akey is leaving state government to join Standard & Poor’s, multiple public finance sources said.

Burleigh County, N.D., is gearing up for the issuance of $90 million of sales-tax backed bonds to finance a new jail.

The Los Angeles Department of Water and Power is proposing rate increases over a five year period on the water and power side to deal with an aging infrastructure.

Moody's Investors Service said it has downgraded to A1 from Aa3 the rating on Alcona Community Schools, Mich.'s general obligation unlimited tax debt.

Prices of top-rated municipal bonds were higher at mid-session, traders said, as yields on some maturities fell by as much as four basis points.

Municipal bond funds have reported outflows for 11 straight weeks, as investor confidence gave way to concerns over the credit of such issuers such as Puerto Rico and Chicago and the probability of rising interest rates.