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Puerto Rico's governor, vowing to repair the island's damaged credit after Standard & Poor's cut its ratings to junk, said the commonwealth is going ahead with a bond sale in the next few weeks.

While news of Puerto Rico's downgrade hung over the municipal market Wednesday, the market slightly outperformed Treasuries and closed mostly flat on the day.

Kentucky Gov. Steve Beshear is proposing a new bond program for its community colleges modeled after a similar program for universities last year.

Competitive bids Thursday on $27 million of revenue bonds will fund a new University of Iowa dormitory to help deal with a housing crunch due to rising enrollment.

Fitch Ratings downgraded more than $7 billion of general revenue bonds issued by the University of California to AA from AA-plus.

Hawaii officials are so proud of their financial comeback that they held a press conference on Monday releasing the state's comprehensive annual financial report.

Convicted bid-rigger Michael Welty and two co-defendants are moving for a new trial, claiming the government suppressed evidence in the form of an email that could have allowed Welty to challenge some of the government's claims against him.

Widener University School of Law's Harrisburg, Pa., campus has scheduled a daylong conference on municipal financial distress for April.

A Treasury Department official said Wednesday that she recognizes the proposed issue price rules would be problematic for competitive bond deals and wants to know more about how they would cause problems for negotiated transactions.

Voters in bankrupt San Bernardino, Calif. elected as mayor, Carey Davis, who ran on a platform critical of decisions made by town leaders that he says landed the city of 213,000 in bankruptcy.

Michigan Gov. Rick Snyder said it would be premature to assume that Detroit's bankruptcy will drive up borrowing costs across the state.

The Chicago City Council approved the appointment of a new comptroller and up to $1.9 billion of general obligation and Midway Airport borrowing at its meeting Wednesday.

Standard & Poor's Rating Services said it raised its long-term rating and underlying rating on the city of Winter Garden, Fla.'s sales-tax revenue bonds to AA-minus from A-plus.

Michigan Gov. Rick Snyder unveiled a 2015 budget that would boost spending on troubled local governments and school districts, build up the state's rainy day fund and finance $200 million of tax breaks.

Illinois' $1 billion general obligation sale Thursday is expected to benefit from improved investor appeal following a pension system overhaul but ratings agencies haven't altered their Illinois ratings.

Jacksonville, Fla., the Sunshine state's largest city, could tap its own utility system to help close the gap on a $1.68 billion pension liability.

Federal Reserve Bank of Atlanta President Dennis Lockhart said he expects the central bank will shrink its $4.1 trillion balance sheet "as the economy gets stronger and stronger."

Fitch Ratings dropped Cleveland's airport to BBB-plus with a negative outlook amid United's recent announcement it would drop the airport as a hub, and city and state officials scrambled to respond to the news.

Congressional and Treasury sources said Puerto Rico won't get direct financial help in the wake of its downgrade.