The U.S. markets started on a sour note this week, as there was still worry about the government shutdown and the impending debt ceiling crisis. By mid-week, investors had some good news, with the nomination of Janet Yellen, an easy-money supporter, as the next Federal Reserve Chairman. The markets turned higher as the week went on due to House Republicans announcing a temporary fix for the debt ceiling crisis. On Thursday, the DJIA saw its largest jump since December 2011, and stocks continued to climb on Friday morning. The first of the big bank earnings announcements were also released on Friday morning, with Wells Fargo posting a drop in revenue, and JPMorgan posting its first loss since 2004. Yields on 10-year Treasury bonds rose throughout the week, but started to fall back in Friday morning's trading. Below, we look at all of Moody's municipal bond upgrades and downgrades from the past week.

Upgrades

• Wicomico County, MD: Moody's upgraded this county to Aa2 from Aa3. The Aa2 rating and upgrade reflects the county's sound financial reserve position, which is bolstered by strong management and formal fiscal policies. The rating also incorporates the county's sizable, albeit rural, tax base that is expected to decline moderately in the near term but experience growth in the longer term due to active economic development efforts and its position as an economic center for the Delmarva peninsula.
• Cook County Community High School District 219, IL: Moody's upgraded this district to Aa1. The district's general obligation unlimited tax rating of Aa1 reflects the district's sizable tax base despite recent declines; a solid socio economic profile located within the Chicago metro area; a strong financial position with significant reserve levels and structurally positive operations; moderate debt position; and modest pension obligation due to state contributions.
• South San Francisco, CA: Moody's upgraded the city of South San Francisco's Conference Center Tax revenue bonds to A2 from A3. The upgrade to A2 from A3 reflects the city's resilient taxable hotel base that has maintained above average occupancy rates through the economic downturn, where occupancy rates outpaced industry growth projections. The A2 rating also considers the city's favorable location between the San Francisco International Airport (SFO) and the city of San Francisco that contributes to strength of the otherwise narrow hotel tax security.

Downgrades

• Des Moines University: Moody's downgraded the Iowa Higher Education Loan Authority, Private College Facility Revenue Bonds (Des Moines University Project), Series 2003 & Series 2004, to A2/ VMIG 1 from Aa3/VMIG 1. The long term ratings are based on the long-term rating of the Bank as provider of the letters of credit supporting the Bonds and the structure and legal protections of the transaction which provide for timely debt service payments to investors.
• Placentia-Yorba Linda Unified School District, CA: Moody's downgraded this school district to an Aa3 from Aa2. The downgrade primarily reflects the district's extremely narrow liquidity and weak reserves brought on by state funding deferrals and year-over-year deficits. While the funding environment for the District is expected to improve slightly due to increasing enrollment and a reduction in funding deferrals from the state, the District has been unable to balance financial operations without drawing down reserves.
• Puerto Rico Conservation Trust Fund: Moody's has downgraded this trust fund's secured notes to Caa3 from Caa1. The rating action affects $200 million of outstanding Puerto Rico Conservation Trust Fund secured notes. This action reflects a recent similar action taken by Moody's on the underlying obligor, Doral Financial Corporation. The Puerto Rico Conservation Trust Fund is a conduit issuer; the downgrade is unrelated to the credit of the issuer or the Commonwealth of Puerto Rico, but is solely a reflection of the credit of Doral, the underlying obligor.
• Yeshiva University, NY: Moody's downgraded this university to Baa2 from Baa1. The downgrade to Baa2 reflects Yeshiva's limited liquidity and dependence on fully drawn operating lines of credit; expectations for a covenant breach on the lines of credit for the second year, which would enable the bank to accelerate payment; severe cash flow deficits resulting in balance sheet erosion and negative debt service coverage per Moody's calculation; ongoing weak disclosure practices, with a second year of delayed audit publication; and potential negative reputational and financial impacts from ongoing litigation against the university.
• Detroit Academy of Arts and Sciences, MI: Moody's downgraded this academy's rating to Ca from Caa2. The downgrade to Ca incorporates both the academy's October 1, 2013 default and the expectation that bondholder recovery is unlikely to exceed 65% of the net present value of remaining debt service payments, based on enrollment and revenue trends. On October 1, approximately $600,000 was paid out of the academy's revenue account on deposit with the trustee, compared to the total $1.7 million of scheduled principal and interest payment due.
• Broward County Housing Finance Auth., FL: Moody's downgraded to Ba2 (sf) from Ba1 (sf) $7,245,000 of Broward County Housing Finance Authority Single Family Mortgage Revenue Senior Bonds Series 2007A and B, and has downgraded to B2 (sf) from Ba1 (sf) $305,000 of Subordinate Bonds Series 2007C. Both the senior and subordinate bonds are dependent upon a subordinate loan portfolio consisting of only 10 current loans as of April 1, 2013. Poor historical loan performance is evidenced by the fact that roughly 60% of all original loans have either defaulted or are seriously delinquent.
• Town of Middletown, DE: Moody's downgraded this town to A2 from A1. The downgrade to A2 reflects the town's challenged financial position evidenced by a negative General Fund balance in fiscal 2012 and declining financial flexibility in the operating funds. The rating also incorporates the town's limited tax base with average wealth levels and a high debt burden.
• Broward County School District, FL: Moody's downgraded this school district's issuer rating to Aa3 from Aa2, and the school board from Aa3 to A1. The Issuer Rating downgrade reflects modest reserve and liquidity levels, which are inconsistent with the higher rating category, and financial challenges going forward. The Issuer Rating also reflects the District's stabilizing economy, manageable debt burden, modest financial improvement.
• Charlevoix Public Schools, MI: Moody's downgraded these public schools to A1 from Aa3. The A1 rating reflects the district's adequate financial operations that are expected to remain narrow despite modest improvement in reserves, moderately sized tax base located in northwestern Michigan with limited economic opportunities, declining enrollment trends, and below average debt burden with no future borrowing plans.
• City of Montgomery, AL: Moody's downgraded this city's issuer and general obligation limited tax rating to A1 from Aa2. The downgrade to A1 reflects the city's continued structural fiscal imbalance and materially weakened financial position. This imbalance has drained cash and reserves in multiple funds and threatens to do so further if unresolved. The city has proven reluctant to enact the expenditure reductions necessary to preserve its finances, the result of which is a very weak balance sheet that leaves the city poorly positioned to contend with any downturn in the economy or additional financial pressure.