News and Information from Bond Buyer

With workforce reductions and lower gas tax revenues, the Oregon Department of Transportation will be challenged, according to a recent audit.

Standard & Poor's Ratings Services said it lowered its underlying rating to A-minus from A on McLean County Community Unit School District No. 7 (Lexington), Ill.'s previously issued general obligation debt.

Of various possible exclusions and exemptions in the SEC's Municipal Advisor Rule, a handful are particularly likely to prove useful in easing disruptions in the underwriter-issuer/borrower relationship.

The Federal Reserve will reduce its monthly asset purchases by $10 billion beginning in July, the Federal Open Market Committee said in a statement released Wednesday following the committee's two-day meeting.

2015 remains the year most members of the Federal Reserve Board members and bank presidents expect monetary policy tightening, according to the Fed's latest summary of economic projections released Wednesday.

Municipal market yields held steady after a month long sell-off week as the market waits for the Federal Open Market Committee meeting announcement on Wednesday.

Standard & Poor's Ratings Services said it has lowered its rating on Puerto Rico Electric Power Authority's (PREPA) power revenue bonds to BBB-minus from BBB and placed the rating on CreditWatch with negative implications.

Workers at two large Puerto Rico public corporations have approved going on strike.

The American Hospital Association has provided the Treasury Department and the Internal Revenue Service with recommendations about updating tax-exempt bond rules to accommodate incentives of President Obama's health care reform law.

Michigan Gov. Rick Snyder knew a $195 million contribution to Detroit's bankruptcy could concern analysts, but believes it is important, a spokesperson said after Standard & Poor's revised its outlook.

The market for variable rate demand obligations has contracted five of the last six years, the Municipal Securities Rulemaking Board said in a report released Wednesday.

BABs, Build American Bonds, New CREBS, new clean renewable act bonds, APPA, American Public Power Association, sequestration, direct-pay

Paying the moral obligation debt the state guaranteed for the failed 38 Studios will strengthen Rhode Island's image in the capital markets, Gov. Lincoln Chafee said in an interview.

Standard & Poor's raised its various ratings on New York's MTA, including an elevation of its transportation revenue bonds to AA-minus from A-plus.

The $900 million triple-A Texas Department of Transportation general obligation mobility fund and refunding bonds Bank of America Merrill Lynch is scheduled to bring to market on Wednesday may be priced at a wider spread than the other triple-A deal that was sold this week, the $978 million Georgia GOs auctioned on Tuesday, a trader in Virginia said.

Two Chicago-based health systems — Alexian Brothers Health System and Adventist Midwest Health — intend to join forces to create a joint operating company with a combined nine hospitals.

Indicator Last Report Forecast Actual CPI April: +0.3% May: +0.2% May: +0.4% CPI Core April: +0.2% May: +0.2% May: +0.3% Housing Starts April: 1.071M May: 1.036M May: 1.001M Building Permits April: 1.059M May: 1.055M May: 991,000

Jun. 18, 2014 Midwest: Plain/Insured GO Yield Curve* State Ratings One-Year Five-Year 10-Year 30-Year Illinois A3/A+/A+ 0.39 2.3 3.57 4.57 Indiana Aaa/AAA/AA+ 0.14 1.36 2.46 3.5 Iowa Aaa/AAA/AAA 0.14 1.37 2.45 3.49 Michigan Aa2/AA/AA 0.19 1.51 2.64 3.71 Minnesota Aa1/AA+/AA+ 0.14 1.33 2.4 3.4 Missouri Aaa/AAA/AAA 0.14 1.31 2.36 3.4 Nebraska NR/AAA/AA+ 0.16 1.42 2.54 3.57 North Dakota Aa1/AA+/NR 0.15 1.4 2.51 3.55 Ohio Aa1/AA+/AA+ 0.15 1.41 2.51 3.56 South Dakota NR/AA+/NR 0.15 1.41 2.55 3.6 Wisconsin Aa2/AA/AA 0.15 1.41 2.54 3.6

6/17/2014 6/10/2014 State # Iss Amount ($000) # Iss Amount ($000) Chg in Amt ($000s) Illinois 21 $666,656 7 $27,720 $638,936 Indiana 5 25,495 11 338,310 -312,815 Iowa 4 26,015 9 38,425 -12,410 Michigan 4 45,640 4 37,485 8,155 Minnesota 33 328,615 34 351,849 -23,234 Missouri 2 11,580 4 23,180 -11,600 Nebraska 1 8,500 2 225,870 -217,370 North Dakota 3 50,310 4 66,645 -16,335 Ohio 1 6,300 3 22,675 -16,375 South Dakota 1 58,600 1 58,600 0 Wisconsin 22 103,050 26 201,680 -98,630

Wednesday, June 18 Issuer St Description Amount