Moody's may cut N.J. cities' ratings
The credit ratings of Camden and five other New Jersey cities were placed under review for possible downgrade by Moody's Investors Service after they lost state aid in Gov. Christie's $29.7 billion budget for fiscal 2012. Moody's said the other cities are East Orange, Passaic, Paterson, Trenton, and Union City. All were placed on a watch list, and the rating firm is expected to finish its review within 90 days, a window during which the Legislature "may restore all or some of this aid." Lower credit ratings mean a borrower would pay a higher interest rate on its loans because investors consider them riskier. - Bloomberg News
Shipping line to quit Tioga Terminal
Sea Star Line L.L.C. said it would suspend its shipping service at Philadelphia's Tioga Marine Terminal on July 22. The shutdown will affect six Sea Star employees. The Jacksonville, Fla., company said the terminal failed to meet revenue goals, but it will review the decision if the economy improves. Sea Star moves 300 loads of consumer goods and manufacturing material through Tioga per week. The goods are sent to and from North America, including the Caribbean. - Jingwen Hu
Area man settles SEC fraud complaint
Otto Sam Folin, 62, of Philadelphia, agreed to settle a Securities and Exchange Commission complaint that he defrauded investors of $8.7 million in a Ponzi-like scheme, the SEC said. . As part of the agreement, Folin, who operated through two companies, Benchmark Asset Managers L.L.C. and Harvest Managers L.L.C., did not admit or deny the findings of an SEC investigation. According to court and public documents, Folin defrauded clients, friends, and family who thought they were making "socially responsible" investments. Folin, Benchmark, and Harvest have agreed to repay $8.7 million, plus interest of $1.45 million. Folin has agreed to a $150,000 fine and to be barred from working in the securities industry. Folin's attorney, Richard Levan Wiggan, had no comment. The agreement must be approved by U.S. District Judge Legrome D. Davis in Philadelphia. - Bob Fernandez
Five Below to open Michigan stores
Five Below Inc., a Philadelphia discount retailer, said it would open five stores in the Detroit area Friday, its first Michigan outlets. They will create 175 jobs. With the openings, Five Below will have 166 stores in 16 states, and it plans to have 200 stores by the end of 2011. The company sells discount fashion accessories, toys, games, and other merchandise priced up to $5. - Reid Kanaley
Resorts gets new casino license
The Resorts Casino Hotel in Atlantic City was granted a new license from New Jersey regulators. The Casino Control Commission gave the permanent license to the new owners of the casino hotel. In financial trouble, Resorts nearly closed in December, but its new owners slashed the payroll and began an extensive marketing campaign. - AP
Elsewhere
Fitch cuts Greece's credit rating
Greece suffered another sovereign downgrade when Fitch Ratings slashed the country's creditworthiness by three notches further into junk status and only one grade above default. The agency, based in New York, cut Greece's rating from B+ to CCC, bringing it broadly in line with the two other major ratings firms, Moody's Investors Service and Standard and Poor's Corp., which lowered the country's bonds to a similar level last month. Fitch said its downgrade reflected the absence of a new international financial-rescue plan for Greece. - AP
Italy to speed OK for austerity plan
Italy will strengthen its package of austerity measures and fast-track its approval by parliament, Finance Minister Giulio Tremonti pledged as he sought to calm market fears that the eurozone's third-largest economy would be swept into the European debt crisis. Italy's move to intensify its austerity drive received a much-needed boost from Fitch Ratings agency, which said the measures would help stabilize the government's finances and its credit rating. - AP
SAP seeks cut in damages award
SAP A.G., the German business-software maker ordered by a jury to pay $1.3 billion to Oracle Corp., told a judge the verdict was based on speculation about Oracle's losses and should be cut to no more than $408 million. A lawyer for SAP, Greg Lanier, said at a hearing in federal court in Oakland, Calif., that during a trial last year Oracle overstated its losses from copyright infringement by an SAP unit. The judge, Phyllis Hamilton, did not rule immediately on the request. SAP's North American headquarters is in Newtown Square. - Bloomberg News
Walgreen hikes dividend
Drugstore operator Walgreen Co. said it was raising its quarterly dividend by nearly 29 percent to 22.5 cents a share from 17.5 cents and its board has authorized a $2 billion stock-buyback program. It said it was committed to return surplus cash to shareholders in the form of dividends and stock repurchases. In its latest quarter, Walgreen posted a $603 million profit, a 30 percent gain from the same period last year. - AP
Money fund rates are mixed
The average seven-day yield on taxable money-market funds was 0.01 percent this week, down from 0.02 percent last week, iMoneyNet Inc. said. A seven-day yield is an annual yield based on the preceding seven days' level of income by the fund. The average yield on tax-free funds was 0.01 percent this week, unchanged from last week. - Paul Schweizer
