News and Information from Bond Buyer

Moody's Investors Service lowered the University of Chicago's rating one level to Aa2 as the school prepares to take on more debt to further its long-term strategic plans that will strain cash flow over the next several years.

The Massachusetts Development Finance Agency has received a $3.9 million federal grant under the credit enhancement for charter schools facilities program.

Puerto Rico officials are signaling that the power authority known as PREPA, with $8.7 billion of debt, is the most likely of the island's largest eligible public corporations to restructure its obligations under the commonwealth's new Recovery Act.

Based on two court cases, two former JPMorgan bankers want the SEC's pay-to-play case involving Jefferson County, Ala.'s failed sewer deals dismissed.

The $11 billion, 10-month legislative bailout of the Highway Trust Fund adopted overwhelmingly by the House would stymie the best chance for a long-term solution for transportation funding, according to most industry experts.

Arizona Gov. Jan Brewer said the state will appeal a state district court order to restore $1.6 billion in school funding.

Indiana Gov. Mike Pence has ordered state agencies to reserve 4.5% of their 2015 appropriations and public universities to hold back 2% despite recent news that the state has $2 billion in reserves.

The $1.4 billion San Francisco Bay Area Toll Authority revenue bonds, the largest deal of the week, set the bar for the rest of the deals that came to market this week.

California's new water usage restrictions are a credit negative for water utilities throughout the state, according to Moody's Investors Service.

Omaha Public Power District is bringing $110 million of subordinate-lien refunding bonds to market this week, marking the district's first deal since its nuclear plant has come back online.

The District of Columbia Water and Sewer Authority will close on about $450 million of debt July 23, most of it in the form of a historic green century bond issuance that DC Water's chief financial officer is crediting with introducing new investors to the large, frequent issuer.

One year after Detroit filed for bankruptcy, muni experts said the city's approach should set a precedent for how not to manage a distressed workout, and that they've learned to throw out many traditional assumptions and beliefs about the treatment of bond debt in Chapter 9.

Shortly after the sighs of relief that followed the Long Island Railroad labor contract announcement, skeptics questioned how it will be paid for without fare hikes or cutting into Metropolitan Transportation Authority capital funding.

Colorado Gov. John Hickenlooper will leave a decision on statewide oil and gas drilling restrictions to voters instead of calling a special session.

The composite index of Leading Economic Indicators was up 0.3% in June following a revised 0.7% increase in May, first reported as a 0.5% climb, the Conference Board reported Friday.

Single-A hospitals have been heavily traded in the secondary market this week, because mutual funds are selling the debt to make quick cash for redemption payments following Puerto Rico’s sell-off last week.

Indicator Last Report Forecast Actual Housing Starts May: 1.001M June: 1.020M June: 893K Building Permits May: 991,000 June: 1.040M June: 963K Initial Jobless Claims 7/5: 304,000 7/12: 310,000 7/12: 302,000 Continuing Claims 6/28: 2.584M 7/5: 2.575M 7/5: 2.507M Philly Fed Manufacturing June: 17.8 June: 16.0 June: 23.9

Jul. 18, 2014 Far West: Plain/Insured GO Yield Curve* State Ratings One-Year Five-Year 10-Year 30-Year Alaska Aaa/AAA/AAA 0.11 1.28 2.32 3.36 California A1/A/A+ 0.14 1.34 2.6 3.76 Hawaii Aa2/AA/AA+ 0.12 1.38 2.51 3.57 Idaho Aa1/AA+/NR 0.11 1.38 2.52 3.59 Montana Aa1/AA/AA+ 0.13 1.39 2.52 3.58 Nevada Aa2/AA/AA+ 0.16 1.44 2.55 3.66 Oregon Aa1/AA+/AA+ 0.11 1.29 2.41 3.46 Washington Aa1/AA+/AA+ 0.12 1.41 2.51 3.59 Wyoming NR/AAA/NR 0.11 1.36 2.41 3.46

7/17/2014 7/10/2014 State # Iss Amount ($000) # Iss Amount ($000) Chg in Amt ($000) Alaska 0 $0 0 $0 $0 California 16 615,830 9 390,245 225,585 Hawaii 0 0 0 0 0 Idaho 1 3,845 1 3,845 0 Montana 0 0 0 0 0 Nevada 0 0 2 43,815 -43,815 Oregon 4 243,620 3 225,295 18,325 Washington 3 215,180 2 87,855 127,325 Wyoming 0 0 0 0 0