Higher education bonds

CHICAGO — The Illinois Institute of Technology is in danger of losing its investment-grade level rating from Moody’s Investors Service as it struggles with operating deficits that have forced draws on its endowment and bank lines to cover debt service and other obligations.

Moody’s Investors Service last week downgraded $1.4 billion of Maine Health and Higher Educational Facilities Authority reserve fund bonds to A1 from Aa3 due to a new rating methodology for pooled debt programs.

Trustees of the Austin Community College District were expected on Tuesday night to approve a truncated sale of $33.5 million of Build America Bonds to build a campus that will serve a new area that joined the district in November.

The Illinois Finance Authority on Tuesday advanced bond deals for two privately developed state university student housing projects and financings for a handful of borrowers rushing to tap federal stimulus bond programs ahead of their expiration.

The Dormitory Authority of the State of New York last week at its monthly board meeting gave final approval to more than $1 billion of bonds for a number of projects.

With an upgrade in hand, the University of Missouri System will enter the market Wednesday with up to $265 million of Build America Bonds to fund improvements at various campuses and its health care facilities.

Kent State University has postponed a $250 million capital program amid opposition from the Ohio Board of Regents.

Gov. Jennifer Granholm next week is expected to sign into law a $383 million capital budget that would fund dozens of projects at universities and community colleges across Michigan.

Louisiana Gov. Bobby Jindal met this week with education officials to discuss the likelihood of additional spending cuts in the fiscal 2012 budget.

Moody’s Investors Service has revised its outlook for Alabama State University’s A2 rating to negative from stable due to concerns about its increasingly leveraged balance sheet and limited growth in financial resources as the current economic climate undermines its traditional level of state support.

A record amount of Build America Bond issuance helped municipal market volume gush to $41.7 billion in November, or 8.9% more than in the same month last year.

The Pennsylvania Higher Education Assistance Agency disclosed Friday that it is complying with an additional information request from the Internal Revenue Service as part of the IRS’ ongoing review of the agency’s student-loan bonds.

The Kansas Board of Regents has adopted new financial rules that will make it easier to refinance outstanding bonds issued for capital improvements at the six state colleges and universities.

The Arkansas Higher Education Coordinating Board has approved bond proposals from the University of Arkansas for Medical Sciences and the University of Arkansas at Fort Smith.

CHICAGO — Ohio will enter the market Monday with $300 million of tax-exempt bonds and taxable Build America Bonds to finance higher education capital projects across the state.

WASHINGTON — The ­Securities and Exchange Commission would violate the Tower Amendment and the principles of federalism if it applies its proposed rules on asset-backed securities to municipal bonds, 14 market groups warned this week.

CHICAGO — A new bond-issuing authority made up of the University of Nebraska and the city of Lincoln will take competitive bids Wednesday on nearly $100 million of recovery zone economic development bonds and Build America Bonds.

Texas Rep. Mike Villarreal, D-San Antonio, has proposed legislation that would allow three state schools in San Antonio to issue $223 million of debt supported by tuition revenues to finance new facilities.

When Adelphi University in Long Island, N.Y., goes to market this week with $25 million of tax-exempt bonds, it will use a resurrected conduit issuer to get around the lack of industrial development agency financing.

Fitch Ratings downgraded to junk its rating on $45.1 million of economic development revenue refunding and improvement bonds issued by the city of Anderson for Anderson University.