Public finance

Bond insurer Financial Guaranty Insurance Co. has subpoenaed Michigan Gov. Rick Snyder and Sean Werdlow, with Siebert Brandford Shank and a former Detroit CFO, for a deposition in the Detroit bankruptcy.

U.S. Chief District Judge Gerald Rosen, the top mediator in Detroit's bankruptcy case, has ordered the city into talks with water and sewer revenue bondholders, one of the few holdout creditors in the case.

Michigan Gov. Rick Snyder Friday signed a package of bills aimed at resolving Detroit's Chapter 9 case at a triumphant ceremony where the governor and others proclaimed the end is in sight for the historic bankruptcy.

CALIFORNIA

The Bond Buyer's muni bond indexes were mixed in the week ending June 19.

As Detroit released preliminary bond documents for next week's $185 million streetlight sale, Fitch Ratings assigned a BBB-plus to the borrowing, saying it believes the utility tax revenues pledged to the bonds are not at risk in the city's bankruptcy.

Watchdog group advises lawmakers to avoid bookkeeping gimmicks in resolving the multi-billion shortfall in the Highway Trust Fund.

Flows among tax-exempt money market funds switched back to negative as they reported the loss of $1.2 billion in the week ended June 16, according to The Money Fund Report, a service of iMoneyNet.com.

CONNECTICUT

ALABAMA

Senators Chris Murphy and Bob Corker have joined forces in a push for higher federal gas taxes to fund highway projects.

Airports want to double the federal passenger facility fee of $4.50 per head, but airlines see no need for the increase.

Miami-Dade County plans to restructure three swaps associated with 1996 and 1997 bonds that have paid off with positive cash flow since being negotiated.

Michigan Gov. Rick Snyder knew a $195 million contribution to Detroit's bankruptcy could concern analysts, but believes it is important, a spokesperson said after Standard & Poor's revised its outlook.

ARKANSAS

ARKANSAS

S&P revises Michigan's outlook down to stable from positive, citing soft revenues as well as its recent contribution to Detroit's bankruptcy.

While states' credit ratings haven't been affected much by climate-related issues, primarily because the federal government has provided aid for those hit by disasters, that assistance may not always be available, a Standard and Poor's official said Tuesday.

Moody's Investors Service has lowered its ratings on $8.5 billion of state and transit agency stand-alone grant anticipation revenue vehicle bonds supported by dwindling revenues from the Highway Trust Fund.

Structural protections and a yield-hungry market are apt to boost interest in bonds for the Detroit Public Lighting Authority, despite the city's ongoing Chapter 9 bankruptcy.