Municipal Bonds This Week (12/14) - Upgrades and Downgrades

December 13, 2013

By: Mike Deane

The markets had a down week, as investors came to terms with the impending bond buying taper that could start as early as this month. The DJIA and the S&P 500 both fell throughout the week, and had their biggest one day drop in the past month on Wednesday. The initial jobless claims also gave investors something to worry about, as the claims came in at 368,000, higher than the expected figure of 320,000. The 10-Year Treasury yields climbed throughout the latter part of the week, after a positive retail sales report led investors to believe that the Fed will pull back its stimulus measures sooner than previously expected. Moody's made no municipal bond upgrades this week, so below are the downgrades made since last Friday.


  • Sierra Madre, CA: Moody's downgraded this city to Ba1 from A3. The downgrade primarily reflects significantly weakened operating results leading to continued rate covenant violation and rapidly declining reserves. The rating also incorporates a weak track record of implementing rate increases, the enterprise's moderately sized customer base with an above average socioeconomic profile, as well as aging infrastructure that requires significant improvements.
  • City of Port St. Lucie, FL: Moody's downgraded this city's general obligation bonds to Aa3 from Aa2. The downgrade of the General Obligation rating reflects the continued weak economic recovery, the recent deterioration of non-ad valorem backed debt that has called for General Fund support, and the expectation of structurally imbalanced operations for the next four fiscal years as the city has elected to finance this support from General Fund reserves rather than from new revenues.
  • Algona, IA: Moody's downgraded this city's Municipal Utility's (IA) electric revenue bond rating to A3 from A2. The downgrade to A3 is based on the electric enterprise's financial underperformance compared to initial projections following the issuance of its 2011 revenue bonds. Debt service coverage was below initial projections for fiscal 2012 and is expected to be even lower in fiscal 2013.
  • City of Monmouth, OR: Moody's downgraded this city to A3 from A2. The downgrade to A3 for the full faith and credit rating reflects the city's exposure to significant enterprise risk. The city issued full faith and credit obligations for Monmouth-Independence Network (MINET) operations, a competitive telecomm enterprise. MINET has incurred losses since inception, and is an operating burden and long term liability for the city.

Login to your account

Email address:

Become a member

Register for a account to get access to a whole new way of tracking, analyzing, and researching bonds.

   Keep track of bonds you own
   Get ratings from S&P and Moody's for all rated municipal bonds
   View issue history reports
   Access our price archives
...And much more

Register now »

We are providing certain data supplied to us by the Municipal Securities Rulemaking Board ("the Service") without warranties or representations and on an "as-is" basis. WE HEREBY DISCLAIM ALL REPRESENTATIONS AND WARRANTIES (EXPRESS OR IMPLIED), BUT NOT LIMITED TO, WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE REGARDING THE SERVICE. You shall bear all risk, related costs and liability and be responsible for your use of the Service.

The transaction data provided through the Real-Time Transaction Subscription Service represents municipal securities transaction data made available by brokers, dealers, and municipal securities dealers to the MSRB and related information. Such transaction data and/or related information may not exist for all municipal securities and may not be required to be submitted to the MSRB for certain types of municipal securities transactions. The MSRB does not review transaction data submitted by submitters for accuracy, completeness or any other purpose, and does not warrant or guarantee the accuracy of any such transaction data and/or related information.

The MSRB, its officers, directors, employees, agents, consultants, and licensors shall not be liable or responsible to you or anyone else for any losses, injuries, damages, costs, expenses or claims caused by, arising out of or relating to the following: (a) acts, omissions, occurrences or contingencies beyond their control; (b) service interruptions or performance failures, such as those that result from the use of telecommunications facilities that are outside of their control, including the Internet: (c) negligence, gross negligence or willful misconduct in procuring, compiling, interpreting, editing, writing, reporting or delivering any of the content and material; (d) lost, stolen, late, corrupted, misdirected, failed, incomplete or delayed transmissions by anyone using the Service, including, but not limited to, any technical malfunctions, human error, computer viruses, lost data transmissions, omissions, interruptions, deletions, defects, hyperlink failures or line failures of any telephone network, computer equipment, software or any combination thereof; (e) damage to your computer systems, equipment, software, data or other tangible or intangible property resulting from or sustained in connection with your use of the Service; and/or (f) any disruption of business, lost sales or lost profits or any punitive, exemplary, indirect, special, incidental, or consequential damages associated or in connection with, resulting from or arising out of any use of the Service or the content and material in the Service.

The MSRB and its officers, directors, employees, agents, consultants, and licensors shall have no liability in tort, contract, or otherwise (and as permitted by law, product liability) to you or anyone else for any reason associated or in connection with, resulting from or arising out of your use of the Service. The MSRB, its officers, directors, employees, agents, consultants, and licensors make, and have made, no recommendations regarding any of the securities or other investment vehicles, referred to or described in the Service.

The Service is reproduced by permission of the MSRB under a non-exclusive license. The MSRB accepts no responsibility for the accuracy of the reproduction of the Service or that Service is current.