Higher education bonds

Massachusetts hospitals and higher educational institutions could face higher borrowing costs in the future as the state plans to fold the Massachusetts Health and Educational Facilities Authority into the Massachusetts Development Finance Agency.

DALLAS — Moody’s Investors Service restored Texas Southern University’s credit to investment grade Tuesday as the historically black school continued its recovery from a financial scandal that threatened its accreditation with the Southern Association of Colleges and Schools.

Public sector spending on new institutional construction in New York City outpaced private spending during a recent two-year period, according to a building industry report.

The Dormitory Authority of the State of New York created a finance committee last week to comply with a public authority reform law enacted last year. The committee will review all proposals for bond financings with DASNY staff before they are brought to the board for approval.

The Dormitory Authority of the State of New York gave final and preliminary approval to $1.15 billion of bonds at its monthly board meeting Wednesday.

Roger Anderson last week stepped down as executive director of the New Jersey Educational Facilities Authority after serving there nearly eight years.

Moody’s Investors Service revised its outlook to stable from negative on Wheaton Franciscan Services Inc.’s Baa2 rating, citing progress in turning around its financial performance.

A new bond-issuing authority that is a partnership of the University of Nebraska and the city of Lincoln plans to come to market next month with up to $100 million of Build America Bonds to finance a new arena.

WASHINGTON — The University of Virginia, one of the first issuers to plunge into Build America Bonds, returns to the market with a $190 million competitive deal scheduled for Wednesday.

CHICAGO — New procurement rules aimed at curbing pay to play in contracts awarded by Illinois, its agencies, and its public universities could dampen the flow of creative financing ideas from the public finance community, some market participants believe.

DALLAS — The Houston Community College System is maximizing taxpayer dollars with today’s $74.6 million negotiated sale that includes $26.7 million of senior-lien student revenue bonds and $47.9 million of tax maintenance notes.

Moody’s Investors Service last week downgraded to Baa3 from Baa2 its underlying rating on Central College’s $23.5 million of outstanding variable-rate bonds from a 2008 issue.

A $1.5 billion general obligation bond sale from the Los Angeles Community College District shares the primary market spotlight this week with $900 million of BABs from Illinois, expected to price Wednesday after a two-week delay.

Standard & Poor last week raised to A-plus from A its rating for Missouri State University’s auxiliary enterprise system revenue bonds due to an improved balance sheet.

The Austin Community College District has completed the latest land acquisition financed with proceeds from a 2009 bond sale that provided some $30 million to buy property for future campuses.

The Dormitory Authority of the State of New York will be able to issue tax-exempt bonds for nonprofits in the manner previously handled by Industrial Development Agencies, under legislation Gov. David Paterson submitted Tuesday.

Standard & Poor’s upgraded to A-plus from A its long-term rating on the Columbus State Community College District following steady improvements in operations and enrollment.

DALLAS — Amid tightening finances, the Arizona Board of Regents will issue $34 million of taxable and tax-exempt bonds this week as part of the state “Speed” stimulus program.

The New York Court of Appeals ruled last week that the state can seize private property on behalf of Columbia University, which wants to expand its campus into Harlem.

Proposed legislation that would allow the State University of New York and City University of New York to set their own tuition rates would have positive credit effects, Moody's Investors Service said last week in a special comment.