The U.S. markets got some positive news this past week, even though the military intervention in Syria is looking more likely. On Wednesday, the Senate approved President Obama s request to strike Syria, though the G20 summit in Russia will provide more definitive answers as to whether the strike will happen. For economic news, the Fed s "Beige Book" showed that the U.S. economy was growing at a moderate rate for July and August, and U.S. jobless claims fell, coming in lower than what analysts were anticipating. However, even though the unemployment rate fell, the U.S. added less jobs than expected. This disappointing jobs report has led many to believe that the Fed will not begin tapering its bond buying anytime soon, which drove Treasury prices up on Friday morning. Yields rose steadily upward throughout the week, and 10-year bonds hit 2-year highs on Friday morning before the market opened. Below, we look at all of Moody s upgrades and downgrades from the past week.

Upgrades

• Hawaii Pacific Health: Moody's upgraded Hawaii Pacific Health to A2 from A3. The upgrade reflects a number of realized expectations, including continued strong revenue growth, the maintenance of strong operating performance, and the further improvement of balance sheet measures.
• Gadsden Independent School District No. 16, NM: Moody's upgraded this school district to A2 from A3. The rating upgrade reflects the district s recent trend of operating surpluses resulting in an improved financial position, as well as our expectation that district management will maintain adequate levels of financial reserves moving forward.
• Trinity River Authority, TX: Moody's upgraded this river authority's rating to Aa3 from A1. The Aa3 reflects the credit quality of the participants, the essential nature of the service provided, and the strong structural agreements including the ability to reallocate costs in the event of non-payment by any of the participants.
• City of Lincoln, NE: Moody's upgraded this city s rating to Aa1 from Aa3. The upgrade to the Aa1 rating is based on the strong and stable performance of the redevelopment area that has generated solid tax increment revenue mitigating the need to levy the limited tax; minimal leveraging of the pledged 2.6 cent levy; solid debt service coverage; adequate legal protections for bondholders; and the sound overall credit fundamentals reflected in the city's Aaa general obligation debt rating.
• New York City Municipal Water Finance Authority, NY: Moody's upgraded this water finance authority's rating to VMIG 1 from VMIG 2. The long-term ratings reflect strong bondholder protections provided by a strong legal structure; healthy debt service coverage provided by a gross lien on the system s revenues and enhanced by independent rate-setting ability; the essential nature of New York City s water and sewer system and the monopoly the city and the authority have in providing that service; the challenges of operating and maintaining the system given its size, age and density of the population it serves; a high debt burden; and continued need for sizeable rate increases.
• Children s Hospital Central California, CA: Moody's upgraded this hospital's bond rating to A1 from A2. The rating upgrade reflects Children s fundamental credit strengths with dominant market position as the only stand-alone, high-end tertiary children s hospital serving a large geographic region. Children's maintains a robust balance sheet with a relatively low debt load and a very strong unrestricted liquidity position that has been bolstered in recent years by large supplemental payments received under the California provider fee program.
• Illinois State Toll Highway Authority, IL: Moody's upgraded this highway authority's Variable Rate Senior Refunding Revenue Bonds 2008 Series A-1a, 2008 Series A-1b and 2008 Series A-2 (the Bonds) in connection with the delivery of Amendments to each Standby Bond Purchase Agreement from VMIG 1 from VMIG 3. The Amendments revise the immediate termination events so that they are linked to credit quality of the Authority.

Downgrades

• Sprague, CT: Moody's downgraded this town from A2 to A1. The downgrade reflects the town s small tax base with significant concentration in paper and cardboard products manufacturing, average resident wealth and income levels, a high debt burden, and affordable pension and OPEB liabilities.
• Lincoln Consolidated School District, MI: Moody's downgraded this school district s rating to Baa1 from Aa3. The Baa1 reflects the district s negative fund balance in unaudited fiscal 2013 results, increased dependence on cash flow borrowing to fund operations, sustained trend of declining enrolment, recent Deficit Elimination Plan with the Michigan Department of Education and severely limited budgetary flexibility.
• Successor Agency to the Walnut Creek, CA: Moody's downgraded this successor agency s rating to Ba3 from Ba1. The downgrade to Ba3 from Ba1 primarily reflects the narrow debt service coverage on an annual and semi-annual basis.
• Harris County Municipal Utility District 55, TX: Moody's downgraded this utility district s rating to A2. The downgrade to A2 reflects the district's inability to improve the General Fund s still narrow reserve levels and the tax base softening experienced in three out of the last five years. The A2 rating also considers the districts average debt profile that is expected to remain manageable despite expected draws on the Debt Service Fund balance.
• Successor Agency of Cathedral City Redevelopment Agency, CA: Moody's downgraded this redevelopment agency's rating to Ba3 from Ba1. The downgrade and Ba3 rating primarily reflect the very narrow coverage on an annual and semiannual basis. The weak coverage is due to a decline in assessed value and the dissolution of redevelopment agencies (now known as successor agencies), which shifts pledged revenue cash flow to a semiannual basis.
• Western State Colorado University, CO: Moody's downgraded this university's rating to Baa1 from A3. The Baa1 underlying rating reflects Western State Colorado University s very high leverage and low debt service coverage, as well as modest operating revenue, enrollment and financial resources. The rating also recognizes a niche in recreation programs, sizable out-of-state enrollment for a regional university and stable yield despite being a less selective university with an acceptance rate around 94%.
• Warren Woods Public School, MI: Moody's downgraded this public school to Aa3 from Aa2. The downgrade reflects significant declines in the district s moderately-sized tax base, weakened socioeconomic profile relative to national medians, above average direct debt burden, and above average pension liability. The rating also incorporates a healthy financial position.
• Town of West Warwick, RI: Moody's downgraded this town's rating to Baa2 from Baa1. The downgrade to Baa2 reflects the town s weak financial operations resulting in significant underfunding of annual pension contributions and an accumulated deficit in the School Fund. The rating also incorporates the town's large pension and OPEB liabilities, a moderately-sized tax base with average wealth and income levels and a manageable debt position.
• Cass City Public Schools, MI: Moody's downgraded this public schools' rating from to A2 from A1. The outstanding bonds are secured by the district's general obligation unlimited tax pledge. The downgrade to the A2 rating primarily reflects the district's narrow financial position and likely continuance of a negative enrollment trend that will place pressure on operating revenue. The rating also incorporates the district s modestly sized tax base, below average socioeconomic profile, and below average debt burden.