News and Information from Bond Buyer

The Puerto Rico sell-off has led to a "flight to quality," municipal bond traders said, benefiting two higher-rated deals that came to market Monday.

New York's MTA and a consortium of Long Island Rail Road unions broke off contract talks, six days before LIRR workers are authorized to strike.

Janney Capital Markets is concerned that Standard & Poor's ratings for some local governments may be too high and out of step with current credit conditions.

Bankruptcy court filings indicates mediation dates have been set for insurers to wrap San Bernardino's bonds to negotiate their fate in the city's Chapter 9 bankruptcy case.

Tennessee plans to price $210 million of new and refunding GO bonds Wednesday in the gilt-edged state's first foray into the market in two years.

An economic study that stresses the value of investments in transportation is part of a weeklong effort by President Obama to get a long-term highway funding bill.

Detroit's newest bondholder settlement calls for a 66% haircut for limited-tax general obligation bondholders, a deal that's severe but unsurprising given Detroit's credit, muni experts said.

Recent credit deterioration of Puerto Rico's public corporations and legislation that would enable some public corporations to restructure their debt have prompted investor questions on the potential ratings impact for bond insurers, according to an article titled "Bond Insurers And The Recent Downgrades Of Puerto Rico's Public Corporations."

Moody's Investors Service said it downgraded the rating to Aa2 from Aa1 on the village of Lake Barrington, Ill. 's outstanding general obligation bonds, and assigned a Aa2 rating to the village 's $2.5 million general obligation special service area number three refunding bonds, Series 2014.

Standard & Poor's Rating Services said it lowered its issuer credit rating on Holly Area School District, Mich.'s general obligation debt outstanding to A-minus from A.

Gov. Deval Patrick vetoed a line item in the $36.5 billion Massahcusetts budget that would have removed the MBTA retirement fund and its board from a sunshine law.

Standard & Poor's Ratings Services said it has lowered its ratings on Puerto Rico Aqueduct & Sewer Authority's (PRASA) revenue bonds, guaranteed by the Commonwealth of Puerto Rico, by one notch to BB.

The State Highway 130 Concession Co. that operates a new, lightly traveled toll road outside Austin says it has reached new terms with its lenders and is not in default.

A water-rate increase much lower than what it sought is a credit negative for Bethlehem, Pa., said Moody's.

The Puerto Rico turmoil that has shaken the municipal bond market the past two weeks will boost demand for the high-grade $108.3 million Pflugerville, Texas, Independent School District general obligation bonds expect to price on Monday.

Gov. Tom Corbett's line-item veto of Pennsylvania's $29.1 billion budget jeopardizes the Harrisburg recovery plan, said state Sen. Rob Teplitz.

With the Fed funds rate target near zero and policymakers using "unconventional" tools, it has been difficult for emerging markets to read U.S. intentions, which could have repercussions for the global economy, according to St. Louis Federal Reserve Bank President James Bullard.

Indiana should impose a new tax to raise revenue for transportation infrastructure, a blue ribbon panel has recommended to Gov. Mike Pence.

Tender rates for the Treasury Department's latest 91-day and 182-day discount bills were mixed, as the three-months incurred a 0.025% high rate, down from 0.030% the prior week, and the six-months incurred a 0.060% high rate, unchanged from 0.060% the week before.

Consumers still expect inflation of 3.2% in the next year and 3.3% over three years, according to the Federal Reserve Bank of New York's June 2014 Survey of Consumer Expectations.