The markets' bull run was tested this week, as the escalating Russia/Ukraine and Israel/Palestine crises spooked investors on Thursday, resulting in the biggest sell-off since April. Friday morning saw stocks bounce back somewhat, but the S&P 500 was still on track for its second straight weekly decline. The second quarter earnings season is now in full swing, with all major banks reporting this week. JPMorgan, Citigroup, Morgan Stanley and Goldman Sachs turned in results that beat analysts' expectations, while Bank of America posted lower results that failed to beat estimates. Earnings season has been fairly positive so far, with General Electric, IBM, Philip Morris, Intel, and Abbott Labs beating estimates, while Mattel and Yum Brands have fallen short of expectations. In employment news, initial jobless claims came in lower than expected this week at 302,000 versus expectations of 310,000. The yields on 10-Year Treasury rates fell this week, after starting on Monday at 2.55 and closing out Thursday at 2.47. Below, we look at all of Moody's municipal bond upgrades and downgrades from the past week.

Upgrades

• Boyer Military Housing, L.C., UT: Moody's upgraded to A1 from A2 the rating assigned to the Utah Housing Corporation Military Housing Taxable Revenue Bonds (Boyer Hill Military Housing Project) Class I 2005 Series A (the "Class I Bonds") and to A2 from A3 the rating assigned to the Class II 2005 Series A (the "Class II Bonds") (collectively, the "Bonds"). The upgrades reflect the strong financials as evidenced by the continued strong debt service coverage ratios and the strong occupancy levels following the successful completion of the initial development period.
• City of Corcoran, MN: Moody's upgraded this city to A1 from A2. The A1 rating reflects the city's modestly sized tax base with high income levels favorably located near the Twin Cities employment center; recently improved, relatively high but nominally modest reserve levels; above average debt levels with some future borrowing plans; and some uncertainty surrounding the expansion of water and sewer utilities.

Downgrades

• The University of Chicago, IL: Moody's downgraded this university to Aa2. The downgrade is due to the combination of the university's increasingly high level of outstanding debt combined with expectations of thin cash flow over the next several years. Indications are that the university's investment in strategic priorities is yielding favorable results that will position it well in the future. However, risk is elevated over the next several years until the university is able to translate its strategic successes into strengthened cash flow to absorb growing debt service and further increases in financial reserves/wealth.
• Madison Local School District, OH: Moody's downgraded this school district to Baa1 from A3. The downgrade to Baa1 primarily reflects the district's very narrow financial position coupled with limited prospects for improvement in the coming year. The rating also reflects the district's above average debt burden, moderately sized tax base, average socioeconomic profile, and long term risks posed by exposure to underfund cost-sharing pension plans.
• University Medical Center Corporation, AZ: Moody's downgraded this corporation to Baa2 from Baa1. The rating has been downgraded to Baa2 reflecting the magnitude of operating losses in FY 2014, the resulting decline in liquidity and decreased financial flexibility over the near term. Although we expect significant operating improvement in FY 2015, we believe that performance will still remain weak relative to peer organizations.
• Newark, OH: Moody's downgraded this this city to A1 from Aa3. The city's A1 rating reflects a moderately-sized tax base near Columbus (Aaa stable); challenged financial operations marked by successive years of structurally imbalanced operations; and manageable debt position with some future borrowing expected.
• Village of Lake Barrington, IL: Moody's downgraded this village to Aa2 from A1. The Aa2 rating reflects the village's limited tax base that has declined in recent years, as well as a narrowed, though still satisfactory financial reserve level.
• Lindenhurst Park District, IL: Moody's downgraded this district to A3 from A1. The A3 rating is based on the park district's moderately sized and depreciating tax base with above average wealth indices; narrow reserves and limited liquidity; and manageable debt profile with slow principal amortization.
• Brunswick City School District, OH: Moody's downgraded this school district to A3 from A2. The downgrade of the district's general obligation rating to A3 reflects its very narrow General Fund reserves which have deteriorated rapidly due to the maintenance of personnel and programming in spite of revenue pressures including the inability to increase local revenues through referenda.
• Delton Kellogg School District, MI: Moody's downgraded this school district to Baa1 from A3. The Baa1 rating reflects the district's very weak financial position coupled with a multi-year trend of falling enrollment that negatively affects the collection of operating revenues. Also incorporated in the rating is the district's modestly-sized tax base with a socioeconomic profile on par with the nation,Michigan's weak institutional framework for school districts that limits revenue raising flexibility, and long term risks posed by exposure to an underfunded cost-sharing retirement plan.
• Will County High School District, IL: Moody's downgraded this school district to Aa3 from Aa2. The downgrade to Aa3 reflects the district's material financial decline following four consecutive years of reserve draws. The Aa3 rating further incorporates the district's sizable tax base located in suburban Will County (GO rated Aa1), above average income indices, and high debt burden with extensive use of Capital Appreciation Bonds (CABs).