Economy

DALLAS - Fitch Ratings cited New Orleans' gradually improving economy in raising the rating on the city's tax-secured general obligation bonds to BBB from BBB-minus yesterday. The move applies to $523.9 million in outstanding GO debt.

WASHINGTON - Two lawsuits in federal courts seeking class action status that claim it's illegal for tolling authorities in Rhode Island and Massachusetts to discount tolls for certain residents and not others could spell trouble for toll-backed muni bonds and potentially affect issuers in other states, some market participants said.

The Massachusetts Health and Educational Facilities Authority Thursday will create a merger committee to move forward with Gov. Deval Patrick's plans to combine the authority with the Massachusetts Development Finance Agency, although market participants worry the initiative may increase borrowing fees.

DALLAS - The Harris County Toll Road Authority serving the Houston area expects a good reception when it takes $250 million of senior-lien revenue bonds to market next week.

The Arkansas Highway Commission last week approved the state’s first road projects financed through federal stimulus funds by awarding $21.2 million of highway resurfacing work.

CHICAGO - Chicago-area not-for-profit hospitals enjoy an estimated $498 million in tax-exemption benefits annually while collectively providing just $176 million in charity care, according to a new report from a Chicago-based fiscal research organization.

CHICAGO - A nonprofit hospital's debt structure - particularly its variable-rate debt exposure and associated liquidity risks - is one of several credit factors that Moody's Investors Service will pay special attention to in 2009, the rating agency said in a report released yesterday.

Moody's Investors Service's rating action on the Metropolitan Transportation Authority's revenue bonds on Friday didn't appear to have an impact yesterday on secondary trading of the cash-strapped New York agency's bonds.

BRADENTON, Fla. - Miami-Dade County Mayor Carlos Alvarez is objecting to the Florida Department of Transportation's decision to reject further negotiations with the concessionaire originally selected to build the $1.2 billion Port of Miami Tunnel project.

House members last week approved their version of a transportation reform bill, one that would terminate the Massachusetts Turnpike Authority and allow the state to issue special obligation bonds to help finance future infrastructure improvements throughout the state. The bill received initial approval in the lower chamber in a 147 to 7 vote.

The Georgia General Assembly Friday ended its 2009 regular session without agreement on new funding for transportation projects as well as measures that would have helped the state's largest transit agency with its budget problems.

The New Jersey Turnpike Authority the week of April 20 will sell $650 million of long-term revenue debt, including $250 million of taxable Build America Bonds, the first new-money sale for the authority since 2005 and the largest sale to date of the new class of securities.

DALLAS - With Texas facing the first drop in fuel-tax revenues in nearly two decades, state Sen. John Carona yesterday called for passage of his bill that would allow counties in metro areas to seek local tax increases.

WASHINGTON - In an effort to boost disclosures for non-pension, health care, and other post-employment benefits, the National Federation of Municipal Analysts is urging issuers to release as much supplemental information in annual financial statements and bond offering documents as necessary "to effectively explain and communicate" their specific OPEB situation and funding approach.

Starved for new capital funding, the Regional Transportation Authority last week praised the Illinois General Assembly's passage and Gov. Pat Quinn's signing of a $9 billion capital program that provides $900 million for public transit.

Standard & Poor's took negative credit actions on a pair of North Dakota hospitals last week.

DALLAS - As airlines struggled with soaring fuel prices last year, Dallas-Fort Worth International Airport capitalized on the energy boom, earning $28 million in royalties on gas production on its 18,092-acre property.

SAN FRANCISCO - The Los Angeles County Metropolitan Transportation Authority plans to refinance $167 million of auction-rate securities Wednesday, as it works to clear its variable-rate debt portfolio of more than a half-billion dollars of poorly performing assets.

Investors who own billions of dollars of debt issued by the Massachusetts Turnpike Authority and the Massachusetts Bay Transportation Authority are waiting to see how they would fare if the agencies are consolidated or merged in order to reduce costs.

New York lawmakers could be called to a special session next week to consider legislation to bail out the cash-strapped Metropolitan Transportation Authority, Gov. David Paterson said last week.