Though markets were up slightly on Friday morning due to a positive Nonfarm Payrolls report, Wall Street was still in for a down week, as disappointing economic reports kept investors out of equity markets. On Tuesday, the Consumer Confidence report for September came in at 86, below the expected 92.5, and Wednesday saw the ISM Manufacturing report come in at 56.6, below the expected 58.5. The markets did get some good macro news, however, on Friday morning, as Nonfarm Payrolls for September were reported at 248,000, coming above the 215,000 that was expected. The report noted that professional and business services, retail trade, and healthcare sectors saw increased employment. Another positive piece of employment news came out on Thursday, with initial jobless claims coming in at 287,000 for the week, below the 297,000 expectation. Rates on 10-Year Treasuries sunk throughout the week, after starting Monday at 2.5 and closing out Thursday at 2.44. Below, we look at all of Moody's municipal bond upgrades and downgrades from the past week.

Upgrades

• Norman Regional Hospital Authority, OK: Moody's upgraded this hospital authority to Baa2 from Baa3. The rating upgrade to Baa2 reflects NRHA's dominant market share, growth of unrestricted cash and investments, and steady paydown of debt. Further, NRHA has maintained positive margins despite the disruption caused by a May 2013 tornado which destroyed NRHA's hospital in Moore, OK (one of three NRHA hospitals). Management has a clear plan for capital investment in Moore, with capital costs expected to be entirely covered by received insurance proceeds.
• City of Katy, TX: Moody's upgraded this city to Aa2 from Aa3. The upgrade reflects the city's stable and expanding tax base, trend of sound financial operations coupled with above average reserve levels, and a manageable direct debt burden with rapid principal amortization and limited near term borrowing plans.
• HP LRHS Land Development: Moody's upgraded to Aa3 from A2 this company's Adjustable Rate Taxable Securities Series 2010 (the "Securities") in conjunction with the substitution of the existing letter of credit with a substitute letter of credit ("LOC") provided by U.S. Bank National Association (the "Bank"). The substitute LOC will replace the current letter of credit provided by Bank of America, N.A. On the substitution date,October 1, 2014, there will be issued an additional $1,000,000 of Securities.
• Cypress-Fairbanks I.S.D., TX: Moody's upgraded this independent school district to Aa1 from Aa2. The bonds are secured by an annual ad valorem tax, levied against all taxable property in the district without legal limitation as to rate or amount.
• Sumitomo Mitsui Banking Corporation: Moody's upgraded to Aa3 from A2 the long-term rating and affirmed the short-term rating of VMIG 1 of Irvine Unified School District Community Facilities District No. 09-1 Adjustable Rate Special Tax Bonds, Series 2012 B (the "Bonds") in conjunction with the substitution of the existing letter of credit with a substitute letter of credit ("LOC") provided by Sumitomo Mitsui Banking Corporation (the "Bank").
• Village of Hempstead, NY: Moody's upgraded this village to A1 from A2. The upgrade to A1 reflects the village's considerably improved financial position, moderately sized tax base with somewhat below-average wealth levels, and a manageable debt and pension burden.
• Utility Board of the City of Key West, FL: Moody's upgraded this utility board to A1 from A2. The rating upgrade to A1 from A2 reflects the utility's strong management of its power supply and distribution system; the sound financial metrics including strong financial liquidity; the utility board's independent governance and sound rate setting authority; and the strong local economy of Key West.

Downgrades

• Springfield Local School District, OH: Moody's downgraded this school district to A2 from Aa3. The A2 rating incorporates the district's estimated negative 2014 financial performance and consequently narrow reserves. The rating also reflects recent difficulty to secure voter support of new operating levies, adding additional stress to the district's fiscal outlook. Lastly, the rating encompasses the district's exposure to unfunded liabilities of two cost-sharing retirement plans, a manageable debt burden, and a moderately-sized tax base near Toledo (A2 stable).
• Hartford, CT: Moody's downgraded this city to A2 from A1. The downgrade to A2 incorporates the weakened financial position, characterized by narrow reserve levels that are expected to decline further following a sizeable anticipated deficit in fiscal 2014. The downgrade also factors the expectation that the city will remain challenged to restore fiscal stability in the near term due to an ongoing reliance on one-time revenue sources for operations, limited revenue raising ability, and diminished flexibility for future expenditure reductions. The rating also incorporates the sizeable liabilities for pension, OPEB, and debt, as well as the city's standing as the state capital and an important regional economic center.
• Spring Lake Public Schools, MI: Moody's downgraded this school district to A1 from Aa2. The A1 primarily reflects the district's elevated debt burden and narrowed reserve position following many consecutive operating deficits. The A1 also reflects slow amortization based on planned additional borrowing through the School Loan Revolving Fund (SLRF), moderately sized tax base, above average socioeconomic traits, stable enrollment trend and long-term risk posed by exposure to an underfunded cost-sharing retirement plan.
• Spartanburg County School District 1, SC: Moody's downgraded this school district to A2 from A1. The downgrade to A2 reflects the district's weakened financial position that is expected to stabilize in the mid-term but remain limited. The rating also reflects the large stable tax base characterized by below average wealth levels and elevated debt profile with below average payout.
• Hartland Consolidated Schools, MI: Moody's downgraded this school district to A1 from Aa3. The A1 rating primarily reflects the district's elevated debt burden; recent operating deficits resulting in narrowed reserves; and limited revenue raising flexibility.
• Scotland County, NC: Moody's downgraded this county to A2 from A1. The A2 rating reflects below-average socioeconomic indices, a late 2013 audit by the North Carolina State and Local Government Commission (LGC) standards, and the county's continued struggles to make its enterprise funds self-sustainable. The rating also incorporates the moderately sized and growing tax base, improving financial performance and cash reserves, and a manageable debt profile with a slightly below-average amortization of debt payment.