Economy

Fitch Ratings yesterday placed the Massachusetts Turnpike Authority's $2.24 billion of Metropolitan Highway System debt on credit watch negative due to rising operating costs and an anticipated drop in debt service coverage.

CHICAGO - Chicago will remarket about $300 million of variable-rate third-lien general airport revenue bonds today, shedding the downgraded insurance from the 2005 floating-rate deal that had prompted investors to drop the bonds.

Facing a budget deficit, the Chicago Transit Authority this week announced it would cut 80 administrative jobs, defer non-critical spending on bus maintenance, and undertake other cost-cutting measures to save $40 million.

DALLAS - Shreveport, La., will further reduce its exposure to variable-rate debt this week with a negotiated sale of $24.7 million of fixed-rate airport revenue bonds to refund variable-rate bonds issued in fall 2007.

CHICAGO - CoxHealth of Springfield, Mo., enters the market today with the first piece of a new-money and refunding transaction for $265 million that will finance a series of expansion projects and restructure outstanding insured floating-rate bonds hit with higher rates due to insurer downgrades.

CHICAGO - The Cleveland Clinic Health System today enters the market with $375 million in fixed-rate revenue bonds, the first in a series of issues totaling $1.1 billion over the next few weeks.

Transportation departments in some states are bracing themselves for staggering cuts to construction projects as the federal highway trust fund dries up and the Federal Highway Administration implements a rationing of reimbursements this week. The announcement exacerbated worries about the fund, which officials now expect to see at least a $3.1 billion shortfall by the end of fiscal 2009.

WASHINGTON - In a complete turnaround, the Department of Transportation is urging Congress to immediately pass legislation that would move $8 billion from the general fund into the highway trust fund, which DOT officials said has collected even less federal gas tax revenue than expected and is headed for a zero balance on Oct. 1.

WASHINGTON - The Maryland Transportation Authority plans to issue $425 million of grant anticipation revenue vehicles in a competitive deal Wednesday, marking the second and final tranche of Garvees being used to finance the ongoing construction of the state's Intercounty Connector, a $2.4 billion, 18.8-mile toll-road project.

The New Jersey Turnpike Authority will not be able to certify by Dec. 1 that it can meet the debt service coverage levels necessary to maintain its ratings without the increased revenue from toll hikes proposed last week.

The Maine Municipal Bond Bank later this month will issue nearly $50 million of debt backed by revenue allocated to the state's new TransCap Fund that lawmakers established to help finance transportation infrastructure needs.

CHICAGO - Investors holding $38 million of bonds issued on behalf of a Michigan hospital will likely end up receiving just $3.2 million under a deal announced last week allowing the cash-strapped facility to enter bankruptcy before being purchased by a for-profit group of physicians.

The federal government must adopt bond-related policy changes and emergency provisions to keep the airport industry afloat, the American Association of Airport Executives said yesterday in a report by its energy and air service task force.

CHICAGO - The University of Chicago Medical Center said yesterday it was "proud" of its charitable care record after receiving a questionnaire on its practices from the U.S. Senate's leading proponent of heightened congressional oversight of nonprofit hospitals and whether they warrant the perks of their tax-exempt status.

The Port Authority of New York and New Jersey last week got a reprieve in what could prove a lengthy dispute over the Federal Aviation Administration's proposed auctioning of two flight slots at Newark Liberty Airport.

The Arizona Supreme Court last week upheld a lower court’s determination that not enough valid signatures were obtained on petitions seeking a statewide referendum on an increase in the sales tax to fund a proposed transportation effort.

Capital Metro hoped to begin its Leander-to-Austin commuter train service by late fall, but officials said last week that two of the planned nine train stations will not be ready until February or March 2009.

DALLAS - The Texas Department of Transportation begins its fiscal year this week with new leadership, a record $8.3 billion budget, and $1.5 billion of newly mandated bonds amid a challenging political environment.

DALLAS - The Tulsa City Council reversed its earlier approval of a 12-year, $2 billion street improvement plan and decided instead to send a five-year, $451.6 million program to the voters in November.

The Internal Revenue Service has closed its audit of $40 million of 2002 revenue bonds issued by the Illinois Health Facilities Authority, now part of the Illinois Finance Authority, without changing the tax-exempt status of the debt, the IFA disclosed Thursday.