After markets hit a low on October 15, the major indexes have been steadily increasing. Wall Street opened flat on Friday morning, and markets were slated to log in their fourth straight week of advances. With last week's many economic releases and international news, markets seemed fairly quiet in comparison this week, until Friday morning saw the release of October's retail sales numbers and the UofM Confidence Index. October retail sales were up 0.3% over September, which is higher than the expected 0.2% rise, and 4.1% higher than October 2013. Nonstore retailers were up 9.1% compared to last October and auto sales were up 8.3%. The University of Michigan's Consumer Confidence numbers were also higher than expected, coming in at 89.4 compared to the 87.5 estimate. In not-as-positive macro news, Initial Jobless Claims came in at 290,000, while analysts were expecting 280,000. In the bond markets, 10-Year Treasury rates were down slightly this week, after starting Monday at 2.38 and closing out Thursday at 2.35. Below, we look at all of Moody's municipal bond upgrades and downgrades from the past week.

Upgrades

• Blackstone Valley Regional Vocational Technical School District, MA: Moody's upgraded this school district's general obligation bonds from Aa3 to Aa2. The Aa2 rating incorporates the district's trend of stable operations, large tax base with favorable demographic characteristics, and low debt burden.
• City of San Diego, CA: Moody's upgraded this city's Issuer Rating to Aa2 from Aa3 and upgraded the city's outstanding Lease Revenue Bonds to A1 from A2. The rating upgrade reflects the city's improved financial position, marked by growing cash and reserves over the past five fiscal years; a growing local economy with sound long-term prospects; new, stronger financial policies; and the city's continued commitment to addressing its pension and OPEB liabilities. The rating also incorporates the city's strong fiscal management that maintained a stable, albeit limited reserve position through the economic downturn with aggressive expenditure controls.
• New York State Power Authority: Moody's upgraded this power authority to Aa1 from Aa2. The upgrade reflects disciplined financial practices that will enable NYPA to expand on its strategic objectives of providing low cost, reliable, clean energy in a manner the encourages business development in the State of New York.
• De Kalb & LaSalle Counties C.U.S.D. 432, IL: Moody's Investors Service has upgraded DeKalb and LaSalle Counties Community Unit School District 432's (Somonauk, IL) General Obligation (GO) rating to A2 from A3. The A2 rating reflects significant improvement in the district's financial operations and its sound Operating Fund reserves. Also reflected in the A2 rating is the district's modest tax base, strong wealth indices, and above average debt burden with rapid principal amortization.
• Tampa Solid Waste Enterprise, FL: Moody's upgraded this enterprise to A2 from A3. The A2 rating is supported by strong legal flow control, contracts for facility operations and demonstrated willingness to raise rates to improve liquidity and coverage ratios.
• Industrial Development Authority of the Town of Front Royal and the County of Warren, VA: Moody's upgraded this development authority to Aa3 from A1. The upgrade to Aa3 reflects the improved underlying credit quality of Warren County including its moderately-sized tax base with above-average wealth levels, strong reserve position, and above-average, but manageable debt burden. The rating also reflects the essential nature of the majority of financed projects, which helps to mitigate the risk of non-appropriation, as well as satisfactory legal provisions.
• Clark County Public Utility District 1, WA: Moody's upgraded this utility district to A1 from A2. Clark PUD's rating upgrade to A1 reflects the district's significantly improved financial metrics and improvement in the service area's economic strength since the recession.

Downgrades

• City of Broken Arrow, OK: Moody's downgraded this city to Aa3 from Aa2. The rating change is attributable to a structural imbalance driven by increasing fixed costs, as well as narrow reserves that are significantly below national medians. The Aa3 rating also incorporates the city's sizeable, growing tax base with a healthy socioeconomic profile, as well as modest debt burden with rapid principal retirement.
• Tacoma Housing Authority, WA: Moody's downgraded this housing authority to Ba1 from Baa3. Cash flow projections demonstrate further the deterioration in the bond program's financial position and cash flow insufficiency is projected as early as 11/20/2020. At this time period, cash flow projections show that revenues will not be sufficient to cover debt service.
• Bishop International Airport Authority, MI: Moody's downgraded this airport authority to A2 from A1. The A2 rating reflects the authority's large tax base with continued economic pressures, declining though still satisfactory reserves, high carrier concentration, and low debt burden.
• Winnetka Park District, IL: Moody's downgraded to Aa1 from Aaa Winnetka Park District's (IL) General Obligation Limited Tax (GOLT) rating and to Aa2 from Aa1 the district's GOLT debt certificates rating. The Aa1 rating reflects the district's recent reduction in operating reserve levels after transferring $4.3 million out of the General Fund to be used for capital projects. Also incorporated in the rating is the district's sizeable tax base experiencing substantial depreciation, affluent socio-economic profile, additional liquidity available in the district's enterprise funds, and modest direct debt burden.
• Clark County, Nevada: Moody's downgraded to Aa3. this county's Industrial Development Revenue Bonds (Southwest Gas Corporation Project) Series 2008A (the Bonds) in conjunction with the substitution of the existing letter of credit (LOC) provided by JPMorgan Chase Bank, N.A. with a substitute LOC provided by MUFG Union Bank, N.A. (the Bank) effective November 12, 2014.
• New Jersey Economic Development Authority: Moody's downgraded this authority to A3 from A1. Under Moody's methodology, ratings for unenhanced pool financings that lack structural enhancements or contain structural elements that provide limited security, such as this pool, will generally be rated based on a "Weak Link Plus" approach. The Weak Link Plus approach, applied to an unenhanced pool financing, provides for up to two notches of rating lift from the lowest rating, except when the weakest link is below investment grade; unenhanced pool financings that include speculative grade participants will generally be capped at Ba1.
• McLean County School District 87, IL: Moody's downgraded this school district to Aa2 from Aa1. The Aa2 rating reflects the district's weakening financial position following two years of operating deficits and the need to use annual transfers from the Working Cash Fund for operating expenditures; levying at the rate cap for key operating property tax levies, limiting future revenue raising flexibility; healthy tax base with moderate valuation reductions but bolstered by significant institutional presence; and a manageable debt burden that may increase if the state shifts its pension funding burden back to districts.
• Algona Municipal Utility Electric Enterprise, IA: Moody's downgraded this city's electric enterprise to Baa1 from A3. The downgrade to Baa1 reflects the electric enterprise's weakened financial position, narrow liquidity, and decline in debt service coverage below rate covenant in fiscal 2013. The rating also incorporates the enterprise's limited but stable service area in northern Iowa; industrial customer concentration; unregulated rate setting authority; heavy reliance on coal-fired generation, exposing the utility to air quality emissions regulations and new capital investment; and relatively competitive retail rates despite recent rate increases.