During the Thanksgiving holiday-shortened week, markets were still showing positive momentum. Tuesday morning saw the release of third quarter U.S. GDP numbers, which showed 3.9% growth, compared to the 3.3% growth that was expected. This was the second Q3 estimate released by the Bureau of Economic Analysis, and is up from the bureau's first estimate of 3.5%. Wednesday's releases were decidedly less rosy than the GDP numbers, however, with the Confidence Index, jobless claims, and home sales all coming in worse than expected. The University of Michigan's Confidence Index was released Wednesday morning, and came in at 88.8, which is lower than the 90 that was expected. Jobless claims for the week came in at 313,000, above the expected figure of 288,000. October's new home sales figures were also released on Wednesday morning, coming in slightly lower than the expected 471,000 at 458,000. Friday morning saw oil prices sink to four-year lows, following the OPEC meeting on Thursday, where it was decided that output would not be cut. Yields on 10-year Treasurys were down this week, sinking from 2.3 on Monday to 2.24 on Wednesday. Below, we look at Moody's municipal bond upgrades and downgrades from the past week.

Upgrades

• District of Columbia Housing Finance Agency: Moody's upgraded this agency's FHA-Insured Multifamily Housing Bonds (Wesley House Apartments Project) Series 2006A to A3 from Baa1. This action, which affects approximately $8,955,000 of outstanding debt, follows the upgrade of Bayerische Landesbank's LT Bank Deposits rating to A3 from Baa1 on May 2nd, 2014.
• The Christ Hospital, OH: Moody's upgraded this hospital to A3 from Baa1. The upgrade is based on good improvement in operating margins in fiscal year 2014, which are expected to be sustained given strong revenue growth and increasing focus on cost reductions, as well as growth in unrestricted investments. The upgrade also reflects greater weight placed on TCH's ownership by theElizabeth Gamble Deaconess Home Association, which will provide over $50 million of new capital funding over the next several years, following a history of large grants to the hospital. The A3 rating also reflects challenges related to operating in a competitive market, supporting a higher-than-average leverage position, and completing a large capital program.
• Hernando County, FL: Moody's upgraded this county to Aa3 from A1. The rating upgrade of the capital improvement bonds is based on strong coverage and satisfactory legal protections. Despite declines related to the recent recession, sales tax collections have improved over the past five fiscal years, and has provided historically solid debt service coverage. The rating also reflects the favorable legal protections including a 1.25 times additional bonds test and a debt service reserve funded at MADS in cash.

Downgrades

• City of Jackson, MS: Moody's downgraded this city to A2 from A1. The downgrade reflects weak management practices evident in poor revenue projections, significant water loss and less than sum sufficient debt service coverage in fiscal 2013. The A2 rating also reflects the system's sizeable customer base, economic stability provided by institutional presence, and limited concentration within the top customers.
• City of Marysville, CA: Moody's downgraded this city's Issuer Rating to Baa1, from A3, and its $7 million of 2011 Taxable Certificates of Participation (COPs) to Ba3 from Baa3. The downgrade of the COPs to Ba3 reflects the heightened risk of a payment default or restructuring for certificate holders. The downgrade follows the failure of a local ballot measure in the November 2014election that would have increased the city's sales tax rate and provided critical support for the city's strained finances. The negative outlook reflects the challenge the city will have in meeting the near-term escalation of lease payments from existing budget resources, which could potentially lead to a default and losses for certificate holders. The collateral backing the COPs provides little, if any, recovery value in the event of possession and re-lease upon a default.