Earnings announcements have been flooding investors' news feeds this week, with some surprising results from big-name companies. Caterpillar posted results that came in below analysts' views and the company cut its earnings guidance for the year, sending the stock tumbling. Microsoft, Ford, 3M, and Altria all beat analysts' estimates, while Dow Chemical, Dunkin Brands, Potash Corp, and Procter & Gamble all turned in results that came in short of analyst expectations. Jobless claims are being reported again, following the end of the government shutdown, and fell 12,000 last week, which was not as much as analysts were expecting. Treasury yields started the week off on a high note, but fell through mid-week, and then stabilized somewhat by the week's end. Below, we highlight all of Moody's municipal bond upgrades and downgrades from the past week.

Upgrades

• Harrison, NY: Moody's upgraded this village from Aa3 to Aa2. The Aa2 rating incorporates the village's improved financial position, sizeable and affluent residential and commercial tax base, and a manageable debt burden with a lower than average pension liability.
• New York State Housing Finance Agency: Moody's upgraded this agency to Aaa from Aa3 in connection with the issuance of a credit enhancement agreement (CEA) provided by the Federal Home Loan Mortgage Corporation (Freddie Mac) in substitution of the current letter of credit provided by Wells Fargo Bank National Association. Upon the effective date of the CEA, the ratings will be based upon the credit quality of Freddie Mac and the structure and legal protections of the transaction, which provide for timely payment of debt service and purchase price to bondholders.
• East Providence, RI: Moody's upgraded this city to Baa3 from Ba1. The upgrade of the city's underlying general obligation rating to Baa3 reflects its improved financial position, following the disbanding of the state appointed budget commission. Under the direction of the state, the city has increased its reserve levels, improved its cash flow position, and implemented policies to ensure fiscal stability moving forward.
• Pittsburgh Water and Sewer Authority, PA: Moody's upgraded this authority's rating to Aa1 from Aa3. The long term rating is based on a joint default analysis (JDA) which reflects Moody's approach to rating jointly supported transactions.
• City of Atlanta Airport, GA: Moody's upgraded this airport's Customer Facility Charge (CFC) Revenue Bonds to A3 from Baa1. The A3 rating and stable outlook for the CFC bonds reflects the gradually improving historical debt service coverage by revenues based on the current $5 per day CFC as well as the stabilization of growth in rental car transactions in sync with growth in O&D enplanements at the Hartsfield-Jackson Atlanta International Airport.
• Lake George Central School District, NY: Moody's upgraded this school district to Aa2 from Aa3. The upgrade to Aa2 reflects strong financial management practices over the past several years, which have resulted in maintenance of healthy reserve levels. The rating also reflects the district's moderately-sized tax base that has experienced declines as a result of softening in the regional housing market, socio-economic levels that are above state and national norms, and low debt burden.

Downgrades

• Grossmont Union High School District, CA: Moody's downgraded this school district to Aa3 from Aa2/NEG. The downgrade to Aa3 primarily reflects the district's very low level of liquidity and narrowed financial flexibility given several years of draws to General Fund reserves. The rating action also incorporates the district's very large tax base, average wealth levels, and an above average debt leverage position.
• Monroeville Municipality, PA: Moody's downgraded this municipality to Aa3 from Aa2. The downgrade to Aa3 reflects draws on reserves for the past eight fiscal years. The rating also factors in the municipality's moderate tax base and manageable debt position.
• Douglas County School District, GA: Moody's downgraded this school district to Aa3 from Aa2. The Aa3 rating reflects the district's deteriorating financial position, pressured by state aid cuts and limited revenue raising flexibility, moderate debt burden and sizable tax base that is beginning to stabilize from previous declines.
• East Spring Valley Fire District, NY: Moody's downgraded this district to Baa1 from A1. The downgrade to Baa1 incorporates the district's multiple tardy payments of debt service on its only bond series. Payments have been 1 to 31 days late. The chronic failure to remit timely principal and interest is a sign of weak financial management.
• Regional School Unit 23, ME: Moody's downgraded this school unit to Baa1 from A2. The downgrade to Baa1 reflects the deterioration of the RSU's financial position and limited ability to raise revenues due to outsized pressure from member communities. The RSU did not properly adjust member town assessments to pay back a $4.4M liability that was not accounted for during reorganization, leading to a negative general fund balance in 2012. Management continues to prolong the repayment of this liability in response to pressure to keep member town assessments from drastically increasing.
• Henderson Municipal Power & Light, KY: Moody's downgraded this utility's rating to Baa2 from A3. The rating downgrade primarily reflects the significant credit deterioration of Big Rivers Electric Corp's(BREC, Ba2/Neg), the utility's largest customer and operator of its sole power plant. The rating also considers the single asset risk and increasing maintenance costs associated with an aging plant not yet fully adapted for environmental requirements, as well as the utility's deteriorating credit metrics in absence of recent rate increases.
• City of Los Angeles' Department of Airports' Ontario International Airport, CA: Moody's downgraded this airport to Baa1 from A3. The downgrade and rating are based on the airport's weakened market position due to a period of sustained enplanement declines that has continued through August 2013. The downgrade reflects Moody's belief that the airport's fundamental market position has changed because strong enplanement declines have continued even as area economic conditions have begun to recover.
• Ohio Capital Assets Financing Program: Moody's downgraded this financing program to Baa2 from A3. The rating was downgraded to Baa2 to reflect the combined credit quality of the pool participants.
• Orlando Health Inc., FL: Moody's downgraded this organization to A3 from A2. The rating downgrade to A3 from A2 is due to Orlando Health's material downturn in financial performance through nine months of FY 2013, decline in combined same-store inpatient admissions and observation stays, loss of market share, and declines in liquidity.
• Sarasota County School District, FL: Moody's downgraded this county school district's Issuer Rating to Aa2 from Aa1, and the school board's Certificates of Participation (COPs) rating to Aa3 from Aa2. The downgrades reflect the district's expected near-term challenge to maintain structurally balanced operations that will continue to narrow its financial position inconsistent with the higher rating category. The Aa3 COP rating reflects the board's strong motivation to appropriate given the essential nature of the projects and master lease provisions requiring appropriation for all, or none, of the district's capital leases, a separate capital outlay millage available to repay this obligation, and rapid 82.9% ten-year payout rate.