The big news in the financial markets this week was the Federal Reserve's announcement that it would begin tapering its bond buying program. The central bank will now purchase $40 billion worth of Treasury bonds per month and $35 billion worth of mortgage-backed securities, which marks a $10 billion cut in purchases. It's important to note that Bernanke has maintained that the central bank's tapering is not on a pre-set course, and that the bank will remain accommodative.

Also in economic news this week was the announcement that U.S. GDP was 4.1% higher in the fourth quarter, which was above analysts' estimate that it would be 3.6%. In less-than-positive news, the Initial Jobless Claims came in at 379,000, above the expected 336,000, and November's existing home sales fell 4.3% to 4.9 million. 10-Year Treasury yields were fairly stable throughout the beginning of the week, before climbing to 2.94% on Thursday. The S&P 500 climbed on Wednesday, following the Fed's taper announcement, but was essentially flat in Thursday's trading. Below, we go over Moody's many municipal bond upgrades and downgrades for the past week.

Upgrades

• Sunshine State Governmental Financing Commission, FL: Moody's upgraded this financing commission's Multimodal Revenue Bonds Series 2010A, 2010B and 2011C (Miami-Dade County Program) to Aa2 from Aa3 in conjunction with the substitution of the letters of credit supporting the Bonds. The new letters of credit (LOCs) will be provided by The Bank of New York Mellon (BNYMellon). They will replace LOCs provided by JPMorgan Chase Bank, N.A. The ratings are based on the credit quality of BNYMellon and the structure and legal protections of the transaction, which provide for timely payment of debt service and purchase price to bondholders.
• Pennichuck Water Works, Inc., NH: Moody's upgraded this company to Baa2 from Baa3. The upgrade to Baa2 reflects strong continued support for the company by the NH-PUC and a stable two-year history of operations under the new rate-making structure put in place upon the City of Nashua's (GO rated Aa2/stable) purchase of PWW's parent company in 2012.
• California Educational Facilities Authority: Moody's upgraded this authority to Baa3 from Ba1. The rating upgrade is driven by a change in relative share in the pool due to the defeasance by Keck Graduate Institute (unrated).
• Massachusetts Housing Finance Agency: Moody's upgraded this agency to Aa3 from A2. The upgrade to Aa3 reflects the Agency's strong financial performance, strong portfolio performance, the single family and multifamily portfolio compositions which include a substantial and growing percentage of government insured loans, as well as MassHousing's conservative bond profile and very strong management.
• Village of Endicott, NY: Moody's upgraded this village to A3 from Baa1. The upgrade of the village's rating to A3 reflects a positive trend in the overall financial position including increased reserve levels. The rating also incorporates the limited tax base size, with taxpayer concentration and below-average demographics, as well as a moderate debt burden.
• Rady Children's Hospital, CA: Moody's upgraded this hospital to A1 from A2. The upgrade to A1 from A2 with a stable outlook reflects Rady Children's strong balance sheet, its improved and strong operating performance, its clinical excellence, and its position as the dominant provider of tertiary and quaternary pediatric services in the greater San Diego Region.
• MultiCare Health System, WA: Moody's upgraded this health system to Aa3 from A1. The upgrade to Aa3 from A1 and the assignment of a stable outlook at the higher rating level reflects the continuation of strong operating performance, the improvement of the organization's cash position, and the improvement of most debt measures.
• Dodge County, MN: Moody's upgraded this county to Aa3 from A1. The Aa3 rating reflects the county's modestly-sized tax base with recent strong growth, healthy financial position with ample liquidity, and modest debt profile.
• Northern California Power Agency: Moody's upgraded this agency to A2 from A3. The rating upgrade to A2 from A3 takes into consideration the successful NCPA power pool operation that incorporates the peaking value of the project. The A2 rating also considered the credit quality of the project participants and the strong take-or-pay power purchase contracts.
• Upper Chesapeake Health System, MD: Moody's upgraded this health system to A2 from Baa1. The upgrade to A2 with a negative rating outlook reflects UCHS's recent change in bondholder security in conjunction with UCHS's entry into the obligated group of A2 rated University of Maryland Medical System (UMMS).
• Cedars Sinai Medical Center, CA: Moody's upgraded this medical center to A1 from A2. The rating upgrade is primarily attributable to a strengthening financial position following multiple years of strong financial performance and the recent completion of a large capital project that will reduce the need for future capital spending.
• South County Hospital, RI: Moody's upgraded this hospital from Baa3 to Ba1. The upgrade to Baa3 is supported by SCH's sustained favorable financial performance over the last three fiscal years producing greater operating cash flow generation, contributing to growth in unrestricted cash and improved debt coverage ratios.
• City of Santa Monica, CA: Moody's upgraded this city to Aa1 from Aa2. The upgrade reflects the system's improved financial performance with consistently well-managed operations and favorable long term planning, resulting in strong debt service coverage and high liquidity.
• City of Corpus Christi, TX: Moody's upgraded this city to A1 from A2. The upgrade affects the corporation's $29 million in outstanding sales tax debt for the Seawall project and the A1 rating is being assigned to the Corporation's $33.4 million Sales Tax Revenue Refunding Bonds, Series 2013 (Arena Project), $8.34 million Sales Tax Revenue Refunding Bonds, Series 2013 (Baseball Stadium Project). All prior debt for the arena project and the baseball stadium is being refunded.

Downgrades

• Bard College, NY: Moody's downgraded this college to Ba1 from Baa1. The downgrade to Ba1 reflects razor thin liquidity and weakening cash flow from operations combined with an entrepreneurial operating model that continues to grow the college's expense base and exposure to philanthropy.
• Brandon School District, MI: Moody's downgraded this school district to Baa1 from A1. The downgrade to Baa1 primarily reflects the district's steadily narrowed reserve position resulting from a long-term trend of declining enrollment and operating revenue, as well as a very high debt burden that has continued to increase in recent years due to tax base depreciation and annual borrowing from the Michigan School Bond Loan Fund.
• Arkansas City Public Building Commission, KS: Moody's downgraded this commission to Ba1 from Baa3. The downgrade to Ba1 reflects the city's narrow General Fund reserve level that receives support from the city's utility system, enterprise risk from a city supported hospital with strained operating revenues and a narrow cash reserve position, and an elevated direct debt burden with a slow principal amortization.
• Village of Matteson, IL: Moody's downgraded this village's GO bonds to B1 from Ba1. The B1 GO rating reflects the village's rapidly deteriorating financial position that includes ongoing annual operating deficits and over reliance on inter-fund borrowing. The rating also reflects the village's elevated debt profile, limited revenue raising flexibility, and significant tax base declines.
• Lansing School District, MI: Moody's downgraded this school district's GO rating to A1 from Aa3. The A1 rating reflects the district's recent operating shortfalls that have resulted in narrow General Fund reserves. The rating also incorporates the district's sizable tax base that has experienced significant valuation declines, below average demographic profile, and manageable debt burden.
• Edgerton Local School District, OH: Moody's downgraded this school district to A2 from A1. The downgrade to A2 primarily reflects the district's narrowed financial position following a material operating shortfall in fiscal 2012. The A2 rating also incorporates the district's small tax base, below average socioeconomic profile, above average debt burden, and long term risks posed by exposure to underfunded cost-sharing pension plans.