Bond ratings

The private-activity bonds funding LAX's automated people mover project have been downgraded to junk by Fitch amid delays and disagreements with the private developer. But Fitch affirmed the airport's AA rating.

The rating agency's new local government rating criteria led to the higher rating.

The system, along with UT Southwestern Medical Center, plan to build a $5 billion pediatric health campus in Dallas.

The City of Angels is the latest in recent days to score a ratings upgrade as Fitch reviews its local government ratings using amended criteria.

Ten other pension obligation bonds are under review by Fitch Ratings as a result of the agency's new local government criteria.

Many issuers are trying to understand rating agency methodology changes that could affect more than a third of them.

The rating agency said legislation signed into law this month to limit annual property tax revenue growth to 5.5% could reduce commercial property collections.

The driving force behind the trend is the overall strength of the economy, according to Fitch Ratings' Michael Rinaldi. Revenue sources for municipalities, such as sales and property taxes, are doing very well. 

Two rating agencies upgraded Los Angeles Unified School District's bond ahead of multi-billion dollar refunding.

"We withdrew the rating because we have determined we do not have sufficient information to maintain a forward-looking credit opinion on the city," S&P said.

The criteria should result in a nearly equal number of upgrades and downgrades in the next half year, according to the rating agency.

S&P Global Ratings revised its outlook on the university's debt to negative a month after Moody's Ratings took similar action as the school faces financial difficulties and management changes.

John Hallacy of John Hallacy Consulting and Rich Ciccarone, president emeritus of Merritt Research Services, talk with Chip Barnett about the municipal bond business over the past 40 years. They take a look back at where the industry has been, where it is and where it will be going.

Rating agency cited built up reserves as a key to the city's "better financial footing."

Under the proposed deal, the city would sell $650 million of judgment bonds to fund back pay for firefighters, whose wages would increase by up to 34% over the life of a new five-year contract.

Moody's Ratings hiked Detroit's issuer and general obligation unlimited tax bond ratings to Baa2 from Ba1, a milestone for the formerly bankrupt city.

Fitch analysts cited improved financial metrics, a full recovery on enplanements and great clarity on its capital program.

Separately, Fitch raised Orlando's $159.87 million of Series 2017A senior tourist development tax revenue bonds, 6th-cent contract payments, to A from BBB.

"The risk of future budgetary pressure is further elevated due to pension contributions falling short of their actuarially determined contribution amounts in each of the past three years and a relatively high level of unfunded pension liabilities," said S&P's Rob Marker.

"In Kentucky, we're working hard to ensure our place as a leader in economic development, and this growth in exports shows our efforts are succeeding," said Gov. Andy Beshear.