This week was mixed for markets, as earnings continued to pour in at a time when traders are trying to predict when Fed tapering will finally start. In addition to that, the S&P 500 gained 4.5% in October, and is up 23% this year, which makes profit-taking tempting for those thinking the market is nearing its top. Though ISM Manufacturing came in stronger than expected, stocks were mixed following the report. The strong manufacturing data and the central bank's comments earlier in the week that the U.S. economy is showing strength are causing investors to think that Fed tapering is not far off. In fixed income news, U.S. Treasury rates were fairly flat on the week. Below, we look at Moody's municipal bond upgrades and downgrades from the past week.

Upgrades

• Sarasota County, FL: Moody's upgraded this county to Baa1 from Baa2. The upgrade to Baa1 reflects the county's recovering taxable values following several years of protracted losses, which, together with defeased debt, has improved coverage levels.
• Springfield's Board of Public Utility, MO: Moody's upgraded this public utility's senior lien revenue bond rating to Aa2 from Aa3 and subordinate lien 2006 lease obligation rating to Aa3 from A1. The upgrade reflects the utility's prudent fiscal management and demonstrated willingness to proactively advance approve multi-year base rate increases to adequately fund capital investments while maintaining strong and stable financial metrics and competitive retail rates.
• Greenport Union Free School District, NY: Moody's upgraded this school district to Aa3 from A1. The upgrade to Aa3 reflects strong financial management practices over the past several years, which have resulted in improved reserve levels. The rating also reflects the district's enhanced operating flexibility through recent approval of a tax cap override, as well as the district's moderately sized tax base, socio-economic levels that are above state and national medians, and manageable debt burden.
• Township of Aleppo, PA: Moody's upgraded this township to Baa1 from Baa2. The upgrade to Baa1 rating reflects the successful completion of the sewer expansion project within the projected time frame and the resulting elimination of construction risk. Given its guaranty of the bonds, the rating also reflects the township's underlying credit quality, including a limited tax base with above-average income levels, a healthy financial position, and above-average debt burden.

Downgrades

• Philadelphia School District, PA: Moody's downgraded the long-term letter of credit (LOC) backed rating of the School District of Philadelphia General Obligation Refunding Bonds Series G of 2010 (the Bonds) to A2 from Aa3. The Bonds, initially issued in the aggregate amount of$150,000,0000, have been bifurcated into two separate series, the Bonds and the School District of Philadelphia General Obligation Refunding Bonds Series H of 2010 (Series H of 2010 Bonds) in connection with the replacement of the existing letter of credit supporting the Bonds with two separate letters of credit.
• Niagara County Industrial Development Agency, NY: Moody's downgraded this agency to A3 from A1. This program was initially downgraded to Aa1 in January 2012 based on a projected revenue insufficiency (inadequate revenues to meet debt service timely) that was 14 years away. The cash flow projections, under a 0% reinvestment rate assumption, continue to demonstrate cash flow insufficiencies as early as January 2026, or 12.2 years from now.
• Town of Stowe, VT: Moody's downgraded this town's issuer rating to Aa3 from Aa2. The downgrade reflects the town's reduced financial flexibility with narrow reserves, stable tax base as an established destination for recreation and tourism, and a minimal debt burden.
• City of Williston, ND: Moody's downgraded this city's sales tax revenue bonds to A3 from A2. The A3 rating reflects the City of Williston's (GO A3, negative outlook) weakened credit quality and a decline in maximum annual debt service coverage as a result of additional leveraging of sales tax revenues. The rating also incorporates significantly improving sales tax collections, adequate debt service coverage, a growing tax base with economic concentration in the oil industry, and satisfactory legal protections. Moody's also downgraded this city's general obligation bonds to A3 from A1.
• City of St. George, UT: Moody's downgraded this city to Aa3 from Aa2. The Aa3 rating primarily reflects the city's large tax base, its position as a regional economic center, and its steady general fund performance, which is bolstered by sound levels of unrestricted liquidity in the capital projects and economic development funds. The one notch downgrade reflects the persistent risk associated with various city enterprise funds.