During the Christmas-shortened trading week, markets continued their five-day gains, with the S&P 500 and the Dow hitting record highs during Wednesday's trading. Investors and traders were spurred on by positive U.S. GDP and employment announcements this week. The final third-quarter U.S. GDP estimates were released on Tuesday morning, coming in at a very impressive 5% growth, which topped analysts' estimates of 4.3%. The positive GDP growth figure--which marks the fastest pace of growth for the U.S. economy in 11 years--fueled a broad rally, causing the Dow to close above 18,000 for the first time. In addition to the GDP report on Tuesday, the markets saw more good news on Wednesday morning, with jobless claims dropping 9,000 to come in at 280,000, marking the fourth straight week of declines. Analysts were expecting a 290,000 in jobless claims. Despite it being a shortened trading week, a few companies released their quarterly earnings reports, with Walgreen Company (WAG) beating estimates on higher Q2 figures, while Cal-Maine Foods (CALM) disappointed investors with estimate-missing results. Yields on 10-year Treasuries were up as of Tuesday's close, starting off Monday at 2.17 and closing out Wednesday at 2.27. Below, we look at all of Moody's municipal bond upgrades and downgrades from the past week.

Upgrades

• Village of Haverstraw, NY: Moody's upgraded this village to Aa3. The upgrade to Aa3 reflects the village's continued healthy financial position despite the various operating challenges over the past three years and management's commitment to maintain sound reserves going forward. The rating also reflects the village's higher than average debt levels and small, residential tax base with below average income levels.
• Continental Holdings, Inc., TX: Moody's upgraded certain debt ratings of United Continental Holdings, Inc. ("UCH"), including the Corporate Family Rating to B1 from B2, and most of the ratings on the Enhanced Equipment Trust Certificates ("EETCs"). Moody's affirmed the senior secured corporate debt rating at Ba2, and downgraded the senior unsecured corporate debt rating to B3 from B2. The Speculative Grade Liquidity Rating is affirmed at SGL-1. The rating outlook is positive.
• Borough of Bergenfield, NJ: Moody's upgraded this borough to Aa3 from A1. The upgrade to Aa3 reflects the borough's improved financial position following a multi-year history of reserve growth. The rating also incorporates the borough's sizeable tax base, above average wealth levels, and manageable debt and pension burden.
• New Mexico Mortgage Finance Housing Authority: Moody's upgraded this housing authority to Aa3 from A2. The upgrade is supported by the trend of strong financial performance, sound asset portfolios, low risk profile complemented by well-established risk management policies and procedures, and satisfactory management and governance practices.
• City of Perth Amboy, NJ: Moody's upgraded this city to A3 from Baa1. The upgrade to A3 from Baa1 reflects the material improvement in the city's finances. The rating also takes into account the city's substantial tax base, elevated debt burden, and weak socioeconomic profile.
• San Joaquin Hills Transportation Corridor Agency, CA: Moody's upgraded this agency to Ba2 from B1. The upgrade to Ba2 is due to a recent debt restructuring that levels out and extends debt repayment by eight years and also lowers interest rates. The restructuring lowers annual debt service growth to 1.6% from the prior 8.8 % for the next ten years and reduces maximum annual debt service (MADs) from $269 million to $186 million.
• Dickson County, TX: Moody's upgraded this county to Aa3 from A1. The Aa3 rating reflects the county's improved financial position with ample reserves and liquidity, moderately sized stable tax base characterized by modest wealth, and slightly above average debt burden with rapid payout.
• Housing Authority of the City of North Charleston, SC: Moody's upgraded this housing authority to A3. The upgrade is based on the current rating of the Guaranteed Investment contract (GIC) Provider, Bayerische Landesbank, which was upgraded to A3 from Baa1 on May 2, 2014. The bond program has increased repayment risk as a result of the reduced credit quality of Bayerische Landesbank. The A3 reflects bondholder's exposure to Bayerische Landesbank's performance for a portion of the funds needed to pay debt service.

Downgrades

• City of Pearl, MS: Moody's downgraded this city to A3 from A1. The downgrade reflects the city's continued deterioration of General Fund liquidity and reserves resulting in a negative General Fund balance and cash position at fiscal 2013. The recommendation also reflects a stable tax base and healthy economy within the Jackson (city of) metro area.
• Dallas County Schools, TX: Moody's downgraded this school district to A3 from Aa3. The downgrade to A3 reflects the issuer's weak financial position with very narrow liquidity, which is due in part to increasing General Fund support for a nonessential enterprise. The rating also reflects the district's large and diverse tax base that is coterminous with Dallas County (GO Aaa, stable outlook) and modest debt burden.
• East Ramapo Central School District, NY: Moody's downgraded this school district to Baa2 from Baa1. The downgrade to Baa2 reflects deterioration in the district's financial position resulting in a negative General Fund balance in fiscal 2013 and 2014. Given its limited liquidity, the district is a regular issuer of cash flow notes to fund ongoing operations. The rating also incorporates the district's substantial tax base, average wealth levels, and minimal debt burden with rapid amortization of principal.
• Million Air One LLC: Moody's downgraded this LLC's General Aviation Facilities Projects Revenue Bonds, Series 2011 issued by the Capital Trust Agency to B3 from B1. The downgrade reflects Moody's expectation that MA1 will not meet the increasing mandatory payments set forth in the most current forbearance agreement, which heightens the likelihood of bondholders declaring default. The rating remains at the B3 level as the defaults are to date technical in nature due to the entity's narrow financial margins and tight cash flow. It is likely that MA1 will continue to make required debt service payments to the bondholders and is taking steps to increase the funds in the supplemental reserve. Additionally, given the underlying strengths of the businesses and the leasehold mortgages, Moody's expects bondholders would have high recovery rates in the event a default was declared.
• Ohio Capital Assets Financing Program: Moody's downgraded this financing program to A2 from A1. The downgrade is driven by the deterioration in aggregate credit quality of the pool participants.