International upheaval caused the markets to fall throughout much of this week, even though some macroeconomic reports came in better than expected. The escalating tensions between Ukraine and Russia, and the resulting sanctions against Russia, led to profit-taking up until Thursday. On Friday morning, however, markets started to rise, as utilities paved the way higher for some major indexes, partially due to the U.S.'s bombing of certain places in Iraq. Markets were also bolstered on Friday morning by reports that Russia was looking to de-escalate its conflict with Ukraine, according to Reuters. Adding to the international turmoil shaking the markets this week was the news that Italy has once again entered a recession. In positive macro news, June Factory orders, and the July Non-Manufacturing Composite Index both came in better than expected, while the Trade Deficit and Initial Jobless claims both came in lower than expected. In the bond markets, 10-Year yields were down between Monday and Thursday, and were falling further on Friday morning, as investors turned to government bonds amid the international uncertainty. Below, we look at Moody's municipal bond upgrades and downgrades from the past week.

Upgrades

• 19 New York School Districts: Moody's raised the rating on 19 New York School Districts (click link for details) to Aa3 from A1. The Aa3 enhanced ratings reflect the additional security provided by the New York State 99-B Post Default Enhancement Program. The program authorizes the state to withhold state aid funding to make bond payments in the event of a school district default. The ratings are derived from a bottom-up approach, as outlined by the methodology scorecard for post-default ratings.
• Town of Ossining, NY: Moody's upgraded this town to Aa2 from Aa3. The upgrade to Aa2 reflects the town's improved financial position following several years of growth in available reserves. The Aa2 rating also incorporates the town's sizable tax base, above- average wealth indices, and modest debt burden.
• Bridgeport Hospital, CT: Moody's upgraded this hospital to Aa3 from A3. The upgrade to Aa3 reflects the recent change in bondholder security in conjunction with Bridgeport joining the newly created Yale New Haven Health (YNHH) obligated group (YNHH is rated Aa3). YNHH's Aa3 rating reflects the system's leading market share over the entire State of Connecticut as a nationally prominent health system anchored by a leading academic medical center, strong affiliation with Aaa rated Yale University, and track record of profitability.

Downgrades

• Martinez, CA: Moody's downgraded this city to Aa3 from Aa2. The Aa3 issuer long-term rating reflects the moderately-sized tax base with above average wealth levels, sufficient financial position despite recent operating deficits, low debt burden, and manageable net pension liability.
• Municipality of Mt. Lebanon, PA: Moody's downgraded this municipality to Aa2 from Aa1. The downgrade to Aa2 incorporates the municipality's declining fund balance, which is now lower than average for the Aa1 rating category. The rating reflects the municipality's moderately sized and affluent tax base in suburban Pittsburgh (rated A1 stable), a favorable income tax trend, and a modest debt burden.
• Gulfport School District, MS: Moody's downgraded this school district to A2 from A1. The downgrade to A2 reflects the continuing trend of decreasing tax base valuation, a history of narrow reserves limiting the district's financial flexibility, as well as above average debt burden with slow principal amortization. The A2 rating also incorporates the district's high pension burden and below average socioeconomic profile.
• Lake Orion Community School District, MI: Moody's downgraded this school district to Aa3 from Aa2. The downgrade to Aa3 primarily reflects the district's narrowed reserve position, ongoing declines in enrollment, elevated debt burden with slow amortization and long-term operating risk posed by exposure to an underfunded cost-sharing retirement plan. Also incorporated into the Aa3 rating are the district's large tax base and above average socioeconomic characteristics.
• Butler County USD 375, KS: Moody's downgraded this unified school district to A2 from A1. The A2 rating reflects the district's modestly sized tax base that benefits from its proximity to the city of Wichita; above average socioeconomic indices; satisfactory financial operations with draws to its already modest reserves; increasing enrollment; an elevated debt burden and absence of net pension liabilities.