Economy

DALLAS — Houston’s transportation authority, Metro, faces delays and growing costs on a $1.5 billion light-rail expansion after its purchase of 103 rail cars from a Spanish manufacturer was found to violate federal law.

Moody’s Investors Service downgraded $80 million of Alaska Industrial Development and Export Authority rental car facility revenue bonds to Baa1 from A3 with a negative outlook, amid falling rentals at Ted Stevens Anchorage International Airport.

Moody’s Investors Service late Tuesday upgraded to A1 from A2 the Southeastern Pennsylvania Transportation Authority, affecting $327 million of debt. The outlook is stable.

The North Shore Long Island Jewish Health System Inc. has agreed to pay $3 million to settle a civil fraud lawsuit in a deal the U.S. attorney’s office announced Tuesday.

DALLAS — Oklahoma is preparing a list of highway projects that could get under way quickly if Congress approves President Obama’s proposed $50 billion infrastructure stimulus program.

CHICAGO — The Chicago City Council Wednesday approved up to $1 billion of new-money and refunding debt that will help the city keep its $8 billion O’Hare International Airport expansion project on track as negotiations with the airlines over upcoming projects continue.

CHICAGO — Kalamazoo, Mich.-based Bronson Methodist Hospital next Tuesday is expected to enter the muni market with $200 million of mostly refunding bonds that will shift nearly all of its debt into a fixed-rate mode.

The West Virginia Parkways Authority cleared a technical hurdle last week toward advancing a bond deal for the U.S. 35 toll road and the issue could be priced by the end of the year.

The Georgia Department of Transportation is revising the process by which it will seek a developer for a new multi-modal passenger terminal in downtown Atlanta.

CHICAGO — The Chicago City Council’s Finance Committee Tuesday advanced the sale of up to $1 billion of new-money and refunding O’Hare International Airport revenue bonds and debt backed by passenger facility charges to raise funds for the second phase of an $8 billion expansion that has yet to win airline approval.

WASHINGTON — The president is expected Wednesday in Cleveland to announce details of a $50 billion measure that would lead into a long-term program containing a national infrastructure bank — a proposal already offered by the administration but now being rolled out as part of an economic package.

DALLAS — The New Orleans Regional Transit Authority will build two new streetcar lines with proceeds from the upcoming negotiated sale of $75 million of sales tax revenue bonds.

MENLO PARK, Calif. — Alaska’s state airport authority will sell $174 million of tax-exempt paper next week to pay for debt refunding and runway repairs, according to a state official.

The Regional Transportation Authority of Illinois board has elected John Gates Jr. to serve as its new chairman, filling the vacancy left by Jim Reilly who resigned in May to serve as the special trustee overseeing reforms at the Metropolitan Pier and Exposition Authority.

WASHINGTON — Transportation stakeholders expecting a comprehensive bill anytime soon could be disappointed as major legislation reauthorizing federal highway and transit programs could be delayed until 2013, sources said last week.

Fitch Ratings last week upgraded the Southeastern Pennsylvania Transportation Authority to AA from A-plus, affecting $327 million of outstanding debt.

The Delaware River Port Authority on Thursday announced a hiring freeze and said it will cut next year’s budget by 2%, or $2.6 million, to reduce the bi-state agency’s spending.

CHICAGO — Detroit-area hospitals plan to spend up to $1.3 billion on capital projects over the next several years in the hopes of creating a medical industry to help replace the city’s vanishing manufacturing base, according to a new report.

The New Jersey Transportation Trust Fund Authority on Thursday approved a $1.4 billion new-money and refinancing deal that will most likely include taxable Build America Bonds.

New York’s Metropolitan Transportation Authority has delayed for a month oral presentations in the selection of underwriters and swap counterparties, the agency confirmed Wednesday.