Markets rose higher again this week, following last week's Thanksgiving-shortened trading period. Though the week started off on a sour note, thanks to disappointing Black Friday sales data and some worrying reports from overseas, as of market open on Dec. 5, the major indexes were still up, after November payrolls came in better than analysts expected. November non-farm payrolls showed that the U.S. created the most jobs in nearly three years, and showed that wages increased by 0.4%. The payrolls number came in at 321,000, far exceeding the 230,000 that was expected. Treasury yields were also up on the payroll news on Friday morning, as the positive jobs update led many to think that the Fed will raise borrowing costs in the near future. However, rates fell from their highs, after weaker factory order numbers were released. In other macro news, Monday saw the Institute for Supply Management release its manufacturing report, which revealed that the manufacturing sector expanded in November for the 18th consecutive month, although the expansion was slightly below what was expected. Below, we look at all of Moody's municipal bond upgrades and downgrades from the past week.

Upgrades

• City of Keller, TX: Moody's upgraded this city to Aa1. The upgrade to Aa1 rating reflects the city's moderately-sized tax base located within the Dallas-Fort Worth (DFW) metroplex that has continued to grow, as well as its above average socio-economic profile. The rating also reflects above-average reserve levels along with a modest debt burden that are amortized rapidly.
• Nelsonville-York City School District, OH: Moody's upgraded this school district to A2 from A3. The A2 underlying rating reflects the district's sound financial position; ample reserves; and manageable debt burden. These credit attributes are balanced against a small tax base; low resident income indices; and elevated exposure to unfunded pension liabilities.
• School District of Haverford Township, PA: Moody's upgraded this school district to Aa3 from A1. The upgrade to Aa3 incorporates the district's improved financial position following several years of growth in fund balance and cash reserves. The Aa3 rating also takes into account the district's stable and affluent tax base; and above average, but manageable debt burden.
• Merrimack County, NH: Moody's upgraded this county to Aa2 from Aa3. The upgrade to Aa2 reflects the trend of stable financial operations, despite mandated nursing home services, with sufficient reserves that have increased steadily over time. The rating also incorporates the large tax base with low unemployment due to the presence of state government and health care sectors as well as a low debt burden.
• Delaware River Joint Toll Bridge Commission, PA: Moody's upgraded this commission to A1 from A2. The upgrade is based on stable traffic performance and increased toll revenues, resulting in improved debt service coverage ratios (DSCRs). The commission's historically strong liquidity position and track record of funding most ongoing capital needs on a pay-as-you-go basis also support the upgrade. These positive factors are balanced by a mature service area with significant competition from other river crossings as well as the commission's support of a significant number of non-tolled bridges within its asset portfolio.
• Uintah County School District, UT: Moody's upgraded this school district to Aa3. The Aa3 upgrade reflects the district's sizeable and growing tax base, resident wealth levels that have improved significantly over the past decade, strong financial operations, and a manageable debt burden. The rating also incorporates the concentrated nature of the district's tax base and local economy, which are largely driven by the oil and gas industry.
• York County Natural Gas Authority, SC: Moody's upgraded this authority to Aa3 from A1. The YCNCA is governed by a ten-member board appointed by the Governor of South Carolina, upon recommendation of the municipalities in York County and the York County Legislative Delegation. The authority's rates are not regulated by the state and can be changed on a timely basis. The board has delegated to management the authority to set rates.

Downgrades

• Wilmette Park District, IL: Moody's downgraded this district's underlying general obligation (GO) rating to Aa1 from Aaa and has downgraded the district's general obligation limited tax (GOLT) debt certificates to Aa2 from Aaa. The Aa1 rating reflects the district's diminished liquidity and reserve position following a recent draw for capital expenditures, and a new formal fund balance policy that indicates reserves will not be restored to previous levels over the near to medium term. The rating also incorporates the district's sizeable tax base near Chicago (Baa1 Negative), affluent resident profile, low debt and manageable pension burden. The district's Aa2 GOLT debt certificate rating reflects the lack of a dedicated property tax levy for repayment of debt service and an expectation that the district's liquidity position will remain somewhat limited over the near to medium term.
• Hocking Technical College, OH: Moody's downgraded this college to Baa1 from A3. The downgrade to Baa1 reflects the college's pressured market position in rural Ohio and thin liquidity. It also captures projections that Hocking's operating performance will weaken during fiscal 2014 and fiscal 2015. Enrollment at the college declined substantially as the local economy improved after the financial crisis, with headcount down 47% since fall 2010. Given a high degree of tuition dependence (65% of fiscal 2013 operating revenue), these enrollment declines have served as the key catalyst for the weakening of the college's finances.
• City of Bedford, OH: Moody's downgraded this city to Aa3 from Aa2. The Aa3 rating incorporates Bedford's modestly sized tax base located south of Cleveland (A1 stable), somewhat challenged demographic profile relative to other highly rated local governments, and recent economic loss of the city's largest employer and taxpayer. Credit pressure tied to the employer loss will be largely offset by the city's very strong fiscal and management profile.
• Occidental Petroleum Corporation: Moody's downgraded this corporation to A2 from A1. The A2 senior unsecured debt rating is supported by the company's substantial scale and diversification, its predominantly long-lived US oil and gas assets, its high level of operating cash flow, and low financial leverage. Because of its depleting resource base, Occidental has sizable reinvestment needs to maintain its asset base. However, even after taking into account the reinvestment requirements, Occidental still compares favorably to other A-rated industrial companies with higher profit margins and lower leverage than most.
• South Carolina Jobs-Economic Development Authority: Moody's downgraded this authority to A2 from Aa3. The ratings are based upon (i) the direct-pay LOC provided by the Bank; (ii) the structure and legal protections of the transaction, which provides for timely payment of debt service and purchase price to bondholders; and (iii) Moody's evaluation of the credit quality of the Bank.