Markets were up again this week, as investors digested a number of economic reports, news from Europe, and the results from the midterm election. Tuesday saw the release of the International Trade report, which showed that the U.S. trade deficit has grown, and that exports are at their lowest point since April. Tuesday also saw the midterm elections, with the Republican party gaining its first majority in Congress since 2006; markets were up Wednesday morning on the news. On Thursday morning, the European Central Bank president, Mario Draghi, announced that the eurozone's quantitative easing is not going anywhere anytime soon, maintaining that the ECB is committed to accommodative economic policies. In employment news, Jobless Claims were released on Thursday, coming in better than the expected 285,000 at 274,000. October's employment data was released on Friday morning, showing that the unemployment rate had fallen to 5.8% from 5.9%. Though the rate was down, markets sold off slightly Friday morning, as only 214,000 jobs were added in October compared to the expected 231,000. In the bond markets, 10-Year Treasury yields were fairly stable this week, starting at 2.36 on Monday and closing out Thursday at 2.39. Below, we look at all of Moody's municipal bond upgrades and downgrades from the past week.

Upgrades

• Stockton, CA: Moody's upgraded this city's senior water enterprise debt to A3 from Ba1. The upgrade for the water system's senior lien debt is a direct result of the bankruptcy court's confirmation of the city's plan of adjustment. This confirmation formally ends the period of uncertainty stemming from the city's bankruptcy. Under the city's plan of adjustment, the system's debt was unimpaired. The rating is now solely a reflection the system's fundamental strengths and weaknesses.
• Mineral Springs School District No. 3, AR: Moody's upgraded this school district to A2 from A3 and concurrently downgraded the district's enhanced rating to A2 from A1.. The rating upgrade reflects the rapid expansion of the district's tax base, as measured by total full value, due to a new coal-fired power plant becoming operational in 2012. As a result of the expansion, the district is now among the wealthiest in terms of local revenue per pupil after being one of the poorest. The unaudited results for fiscal 2014 show an available fund balance increase almost seven times the prior year, which could put upward pressure on the rating if managed properly. Although the district is under new management, the rating takes into account the severely weak fiscal management in prior years that led to classification on the state's fiscal distress list and state intervention in 2013. The district's below average wealth levels and modest debt burden are also reflected in the rating.
• Wheaton Park District, IL: Moody's upgraded this district to Aa2 from Aa3. The Aa2 is based on the district's improved operating reserve position, large tax base near Chicago (Baa1 NEG), affluent resident profile and low debt burden. Additionally, the Aa2 reflects the district's historically financially underperforming Cosley Zoo Fund and stable Arrowhead Golf Enterprise Fund.
• San Francisco Municipal Transportation Agency, CA: Moody's upgraded this agency to Aa2 from Aa3. The upgrade to Aa2 rating reflects a steady trend of positive financial operations, significantly improved liquidity levels, limited plans for the issuance of new parity debt, and the strength of the city and regional economies. The rating also incorporates the agency's strong underlying fundamentals including an unusually diverse revenue base, strong revenue raising flexibility, high demand for the essential service it provides in San Francisco (Aa1/stable), and very low debt levels.
• Town of North Castle, NY: Moody's upgraded this town to Aaa from Aa1. The Aaa rating reflects the town's recently improved financial position characterized by robust liquidity and reserve levels, strong management team, diverse and wealthy tax base that includes a Fortune 500 corporate headquarters, and manageable debt burden.
• Barnabas Health, NJ: Moody's upgraded this organization to A3 from Baa1. The upgrade reflects the improvement in financial performance and balance sheet metrics as this large$2.8 billion system (based on FY 2013 revenues) continues to coalesce and benefit from a centralized operating model.
• Town of Danville, CA: Moody's upgraded this town's Issuer Rating to Aaa from Aa1 and upgraded the town's Series 2001 and Series 2005 Certificates of Participation (COP) to Aa2 from Aa3. The upgrade to Aaa primarily reflects the town's strong economic prospects and excellent management, as demonstrated by a consistent trend of large operating surpluses throughout the recession, resulting in robust reserves and liquidity.
• Christiana Care Health Services, DE: Moody's upgraded to Aa2 and Aa2/VMIG 1 from Aa3 and Aa3/VMIG 1, respectively, the ratings assigned to Christiana Care Health Services' (CCHS) outstanding bonds, issued by the Delaware Health Facilities Authority. The rating upgrade to Aa2 reflects Christiana's history of consistently strong financial performance, strengthened debt coverage measures including measurable reduction of unfunded pension liability, marked growth in liquidity, commanding market position in state, and strong and experienced management team.

Downgrades

• Logan County School District 92, IL: Moody's downgraded this school district to A2 from A1. The A2 issuer rating reflects the district's small but stable tax base in central Illinois (A3/Negative); recurring operating deficits resulting in narrowing though still healthy reserves; and moderate debt burden. The district's GOLT bonds are rated on parity with its issuer rating due to the presence of a designated levy with an unlimited rate that is projected to provide adequate revenues to pay debt service.