Wall Street made positive strides this week as Thursday brought all-time highs for the S&P 500 amid several encouraging economic data reports. Investors continue to debate how much longer the bull market can run and whether or not it is overextended at this point in time; and it seems like a debate that will continue for the foreseeable future. Below, we look at all of Moody's municipal bonds upgrades and downgrades from the past week.
Upgrades
- Pearland Independent School District, TX: Moody's Investors Service has upgraded to Aa2 from Aa3 the underlying rating on Pearland Independent School District's (TX) General Obligation debt. The outlook remains stable. The Aa2 reflects the district's well-managed financial operations, evidenced by five consecutive years of operating surpluses, which resulted in healthy reserves and ample liquidity.
- Upper Trinity Regional Water District, TX: Moody's Investors Service has assigned an A2 to Upper Trinity Regional Water District $3.1 million Regional Wastewater Treatment System Revenue Refunding Bonds. The A2 reflects satisfactory debt service coverage, the underlying credit quality of the participants including a history of continued stable financial performance, adequate legal covenants, and contractual agreements which include step up provisions in the event of non-payment by any of the participants.
- Commissioner of Iron Range Resources and Rehabilitation, MN: Moody's Investors Service has upgraded to A1 from A2 the rating on the Commissioner of Iron Range Resources and Rehabilitation of the State of Minnesota's Educational Facilities Revenue Refunding Bonds. The upgrade to A1 rating reflects the adoption of new leverage constraints, in the form of a closed lien structure, and long history of positive revenue performance.
- Nashoba Valley technical High School District, MA: Moody's Investors Service has upgraded to Aa1 from Aa2, the rating on Nashoba Valley Technical High School District's (MA) general obligation bonds. The upgrade primarily reflects the district's above average General Fund reserve position, low debt burden, and strong socio-economic indicators.
Downgrades
- Southwestern Central School District, NY: Moody's Investors Service has downgraded to A1 from Aa3 the underlying rating on Southwestern Central School District's (NY) General Obligation bonds. The downgrade to A1 reflects the recent deterioration in reserves and reduced financial flexibility.
- Copiague Union Free School District, NY: Moody's Investors Service has downgraded to A1 from Aa3 the rating on Copiague Union Free School District's (NY) $12.7 million in general obligation debt. The downgrade to A1 reflects the district's weakened financial position following three consecutive years of reserve draws, including a projected draw down in 2014.