Markets were up moderately by Friday morning, after a week of mixed earnings reports, M&A moves, and positive new home sales news. As earnings season winds down, reports this week from retailers The Gap (GPS), Foot Locker (FL), and Home Depot (HD) beat analysts' earnings estimates, while Target (TGT), Dick's Sporting Goods (DKS), and Staples (SPLS) missed expectations. In mergers and acquisitions news this week, reports early in the week suggested that cigarette maker Reynolds American (RAI) was in talks to purchase Lorillard (LO), but it later surfaced that the deal would not go through at this time. As well, Pfizer (PFE) had its latest offer to purchase UK-based pharmaceutical company AstraZeneca (AZN) turned down. In successful M&A news, it was announced that Marathon Petroleum (MPC) will be purchasing the Hess Corp's (HES) retail business for $2.87B. In macro news, New Home Sales figures were released on Friday, coming in at 433,000 versus the expected 425,000. Existing home sales down, however, falling 6.8% in April, and coming in at 4.65 million, below the 4.69 million expectation. Initial jobless claims were up to 326,000, compared to estimates of 310,000. In bond news, 10-Year Treasury yields were up slightly this week, starting off on Monday at 2.54 and ending on Thursday at 2.56.

Below, we look at all of Moody's municipal bond upgrades and downgrades from the past week.

Upgrades

• Charleston County School District, SC: Moody's upgraded this school district to Aa1 from Aa2. The upgrade reflects the district's recently improved reserve levels, which have benefited from formal fiscal policies and conservative management. The upgrade also incorporates the district's stable tax base that realized notable growth in recent years, despite the economic downturn.
• Langlade County, WI: Moody's upgraded this county to Aa3 from A1. The upgrade to Aa3 reflects the county's strong financial position supported by conservative budgeting and healthy reserves, and manageable debt levels with rapid repayment. Also incorporated in the rating is the county's moderately-sized depreciating tax base, and below average socioeconomic characteristics.
• Uniontown Area School District, PA: Moody's upgraded this school district's GOLT bonds to A3 from Baa1. The upgrade of the GOLT bonds reflects the district's recovery of fund balance from negative levels. The positive outlook reflects the district's reduction of ongoing fixed costs and improving financial position.
• Meriter Hospital, WI: Moody's upgraded this hospital to Aa3 from A2. The upgrade to Aa3 reflects an imminent change in bondholder security in conjunction with Meriter Hospital's entry into the Obligated Group of Aa3-rated Iowa Health System d/b/a UnityPoint Health(UnityPoint). Should the proposed substitution of notes not take place as outlined, Meriter Hospital's rating will be revisited and could be downgraded.
• Volusia County School Board, FL: Moody's upgraded this school board to Baa1 from Baa2. The Baa1 sales tax rating and upgrade reflect a slowly recovering trend in sales tax collections, as evidenced by a still narrow 1.16 times coverage of maximum estimated debt service in fiscal 2013. The Baa1 rating also reflects the district's narrow tourist-based economy and short remaining three-year life of the tax and bonds. This voted infrastructure-based tax is passive in nature and does not reflect the school district's favorable credit characteristics.
• Sag Harbor Union Free School District, NY: Moody's upgraded this school district to Aa3 from A1. The upgrade to Aa3 reflects strong financial management practices over the past several years, which have resulted in improved and satisfactory reserve levels. The rating also reflects the district's sizeable and wealthy tax base, and modest debt burden.
• Montgomery County Municipal Utility District 9, TX: Moody's upgraded this utility district to A1 from A2. The upgrade to the A1 rating reflects the above average socio-economic indicators, increasing taxable value, healthy financial reserves, and elevated debt burdens.
• County of Orange, NC: Moody's upgraded this county to Aaa from Aa1. The upgrade to Aaa reflects the county's healthy financial performance that has strengthened over the past five years given conservative budgeting practices and prudent management that is committed to maintaining healthy reserves. The rating also incorporates the sizeable and diverse tax base anchored by the University of North Carolina at Chapel Hill (rated Aaa) and proximity to the vital research triangle economy, and average debt profile with above average amortization of principal.

Downgrades

• City of Waverly, IA: Moody's downgraded this city to Aa3 from Aa2. The Aa3 rating is based upon the city's small but stable tax base, the value of which is well below the median for Aa rated cities, satisfactory General Fund reserves, moderate revenue raising flexibility, and high debt burden with future borrowing planned.
• Village of Richton Park, IL: Moody's downgraded this village to A2 from A1. The A2 GO rating reflects the village's narrow General Fund cash position following three consecutive years of operating deficits, ongoing pressures from tax appeals, underperforming TIF funds and diminished revenue raising ability given its lack of home rule authority. Also incorporated into the A2 are the village's small and declining tax base near Chicago (Baa1 negative), low debt burden, moderate pension burden and average socioeconomic profile.
• Hastings College of the Law, CA: Moody's downgraded this college to A2. The downgrade to A2 rating for both the issuer and bond ratings reflect a significant erosion of student demand and deteriorating operating performance with expectations for continued weak cash flow as Hastings continues to execute its plan to reduce JD enrollment while holding tuition flat for the next three fiscal years.
• City of Newark, NJ: Moody's downgraded this city's general obligation rating to Baa1 from A3. The downgrade of the general obligation unlimited tax rating to Baa1 from A3 reflects the city's depleted reserves and liquidity with sizable and persistent budget gaps, the city's substantial and diverse $13.9 billion tax base anchored by a significant corporate, government and non-profit presence, and an above-average debt burden and pension liability.
• New Jersey County College Enhancement Bond Program: Moody's downgraded this bond program to A2 from A1. The program's rating and outlook are directly linked to the state's general obligation bond rating (A1 negative - see report dated May 13, 2014), but notched below because state payment of debt service on the Chapter 12 (New Jersey County College Bond Act, P.L. 1971 c. 12) debt is subject to annual appropriation by the state.
• New Boston Local School District, OH: Moody's downgraded this school district to A3 from A1. The downgrade to A3 primarily reflects the district's extremely limited tax base and weak socioeconomic profile, as well as a nominally limited financial position. The rating also reflects the district's above average debt burden, limited prospects for raising new revenue, projected financial draw downs, and long term risks posed by exposure to underfund cost-sharing pension plans.
• Madison Metropolitan School District, WI: Moody's downgraded this school district to Aa1 from Aaa. The Aa1 rating reflects the district's sizeable tax base supported by one of the state and nation's most stable economies, sound financial operations, adequate though relatively narrow General Fund reserves, modest debt profile; and manageable pension obligations.
• Clark (County of) NV Airport Enterprise: Moody's downgraded this enterprise to Aa3 from Aa2. The downgrade to Aa3 reflects Moody's assessment that the senior lien debt is better positioned at Aa3, compared to other highly rated peers. Moody's notes that the senior lien debt service coverage remains well above the median near 4.0 times, but the lack of debt service reserve funds on some series weakens the positive impact of the high coverage.