The first full trading week of 2015 got off to a shaky start, but markets were back on the rise by midweek, following the release of dovish FOMC minutes. Markets were down on Monday, following another drop in oil prices and concerns that Greece would leave the European Union. Oil continued to drag on the markets on Tuesday, along with disappointing November Factory Orders, but Wednesday saw the release of the FOMC minutes, which pointed to no interest rate changes until April. This dovish statement bolstered markets throughout Thursday, with a rise in oil prices also providing positive market momentum. By midday Friday, markets were down slightly, after the December Nonfarm Payrolls came in mixed. The December employment numbers showed that there were 252,000 jobs added during the month, which is above what analysts had expected, but wages were down. On the positive side, the unemployment rate dropped to 5.6%, but the 0.2% drop in wages was worse than the 0.2% gain that was expected. Next week marks the unofficial start to earnings season, with Alcoa reporting on Monday. The yield on 10-Year Treasuries dropped throughout the midweek, before ending Thursday at 2.03. Below, we look at Moody's municipal bond upgrades from the past week, as there were no downgrades made.
Upgrades
- Pennsylvania Economic Development Financing Authority: Moody's upgraded this authority to B3 from Baa2. These upgrades level the rating on these instruments with the other rated unsecured obligations of US Airways Group, Inc., also rated B3. US Airways Group, Inc. guarantees the issuer's obligations under the issued bonds.
- Trinitas Regional Medical Center, NJ: Moody's upgraded this medical center to Baa2 from Baa3. The upgrade to Baa2 is supported by TRMC's improved operating performance over the last three years due to continued expense reductions and more favorable managed care rates. The higher operating cash flow generation has improved debt coverage and leverage measures and fortified a historically strong liquidity position.
- Union Elementary School District, CA: Moody's upgraded this school district to Aa1. The upgrade to Aa1 reflects the district's outperformance of peer school districts nationally on tax base stability and growth as well as financial performance through the Great Recession. The Aa1 rating primarily reflects the district's large-sized, residential tax base that we expect will undergo moderate growth and resident wealth levels well above state and national medians.
Downgrades
There were no downgrades this week.