Downgrades

An agreement between Norman Regional Health System and bondholders postponed a Sept. 1 debt service payment until a $40 million bond sale closes.

Norman Regional Health System says it will use interim financing to make a Sept. 1 debt service payment that bondholders agreed to delay.

For the second time in a year, the Texas city's elected officials voted against moving forward with the Inner Harbor project to boost long-term water supply.

Moody's Ratings cited the increasing likelihood the federal government won't continue leasing the current Washington, D.C., headquarters for NASA.

Thursday's move marks another formal step back from a water supply crisis that has negatively impacted the city's bond ratings. 

Box Elder School District's general obligation rating was cut to A1 from Aa2 ahead of a certificates of participation sale this week.

The city moved to a less-restrictive Stage 2 drought status for water use in another sign after recent rain that a water supply emergency is no longer imminent.

Jefferson County School District R-1's lawsuit comes after the U.S. Department of Education threatened to withhold federal funding over transgender policies.

The Texas city needs higher rates in part to support future debt that would be issued for $1.1 billion of water supply projects that are underway.

The grace periods are getting shorter.

"I don't mind owning a railroad for $2.4 billion," said Assured CEO Dominic Frederico.

The drought-stricken Texas city's utility system rating was cut two notches to A, marking a continued downward trend in its credit quality.

With enrollment and funding not keeping pace with rising costs, public education is feeling rating pressure at both the K-12 and higher education levels.

Moody's Ratings downgraded Northern Illinois University's issuer and revenue bond ratings to Ba1 from Baa3.

The risk of contagion to the rest of the high-yield market is limited, investors said.

The rating agency cited the city's sharply diminished liquidity and reserves.

Moody's said the $350 million of Series 2007 Class I bonds are on review for further downgrade.

The review, which included mostly Texas and Colorado bond issuers, comes as the amount of voter-approved debt authorized for districts is exploding.

Children's hospital achieves moderate to low-risk yield on junk-rated bonds boosted by insurer.

The parent of New York's Metropolitan Opera fell deeper into junk-bond status this week, while the New School university has a lower investment-grade rating.