After posting record highs throughout last week, markets started to pull back this past Wednesday, due to the World Bank's reduced global forecast, and fell even further on Thursday amid violence in Iraq. The situation in Iraq has brought oil into focus this week, with prices up to $106.66 per barrel on Friday morning. May retail sales figures were released on Thursday, coming in at 0.3%, below estimates of 0.6%, while the UofM Confidence Index also came in below estimates of 83 at 81.2. In more negative macro news, Initial Jobless claims came in above expectations at 317,000, versus the estimate of 310,000. Turning to the bond markets, the yield on 10-Year Treasurys peaked on Wednesday at 2.65 before dropping to 2.58 to close out Thursday. In municipal bond coverage news, Morningstar announced on Wednesday that it would no longer be researching municipal bonds, due to a lack of demand. Below, we look at all of Moody's municipal bond upgrades and downgrades from the past week.

Upgrades

• City of Port Orange, FL: Moody's upgraded this city to Aa3 from A1. The Aa3 capital improvement ratings are based on the favorable revenue performance of the primary consumer-based taxes, which exhibit only slight volatility, as well as the ultimate city covenant pledge (from non-ad valorem revenues) for the Series 2014 bonds (only).
• Midlothian, TX: Moody's upgraded this city to Aa3 from A1. The Aa3 rating reflects the city's growing tax base which we expect to continue in the future, strong revenue growth demonstrated through sales tax and property tax performance, and the large financial reserves. The rating also incorporates the city's higher than average, though rapidly amortizing debt burden as the city continues to expand.
• Children Hospital of Alabama: Moody's upgraded this hospital to A1. The upgrade to A1 reflects several years of very strong financial performance that have allowed CHA to build significant balance sheet reserves, and our expectation that operating performance will remain strong over the near term. The rating is also attributable to CHA's very strong market position as the only stand-alone children's hospital in Alabama. The rating is constrained by CHA's smaller size relative to higher rated children's hospitals, and limited fundraising base.
• Sparks Tourism Improvement District No.1, NV: Moody's upgraded this district to B1 from B2. The B1 rating reflects Moody's projections that the bonds will default in 2028, absent additional growth in pledged revenues. However, recent improvement in sales tax receipts results pushes default to June 15, 2028 from December 15, 2027, and improves the recovery rate to 98% of scheduled debt service. Full payment of annual debt service through the medium term is expected without draws on the reserve fund, despite a still tepid local economy.

Downgrades

• Ravenna City School District, OH: Moody's downgraded this school district to Baa1 from A2. The downgrade to Baa1 primarily reflects the district's limited tax base, poor election history, high unfunded pension obligations, and poor socio economic profile. The rating also takes into account the weak cash position, and projected draw downs in general fund balance.
• Glenville State College, WV: Moody's downgraded this college to Ba2 from Baa3. The downgrade to Ba2 with a negative outlook is driven by Glenville State College's ("GSC") extended period of fiscal stress, elevated financial leverage, and extremely weak liquidity that is insufficient to cover$25 million of bank debt which the bank has the option to call on August 31, 2014 or any day thereafter upon 120 days notice.
• Quemado Independent School District No. 2, NM: Moody's downgraded this school district to A3 from A2. The A3 rating is primarily based on the district's deteriorating financial performance demonstrated through declining reserve levels. The rating further reflects the district's modest tax base with poor socioeconomic indicators and low debt burden.
• Northwest School District R-1, MO: Moody's downgraded this school district to Aa3 from Aa2. The Aa3 rating incorporates the district's moderately-sized and stable tax base, average resident wealth levels, healthy reserve levels that are expected to be reduced over the next two years, declining enrollment trends which will negatively impact intergovernmental revenue, an average debt profile, and high pension burden.
• City of Riverside, CA: Moody's downgraded this city's Sewer Revenue Bonds, Series 2009 to A1 from Aa2. The downgrade to A1 reflects the sewer system's narrow debt service coverage on a net revenue basis, which has fallen to below sum sufficient in the most recently audited fiscal year and is projected to recover to just above sum sufficient over the next two fiscal years. The rating additionally factors the system's healthy recently narrowed liquidity position, an economically pressured service area, which has shown signs of improvement in recent history and a manageable capital plan.
• City of St. James, MN: Moody's downgraded this city to A2. The downgrade to A2 rating reflects the city's underperforming wastewater enterprise and high fixed costs. Also incorporated in the rating is the city's modestly-sized and depreciating tax base, stable local economy, and healthy General Fund reserves.
• Providence Health & Services, WA: Moody's downgraded Providence Health & Services' long-term parity debt to Aa3 from Aa2. The downgrade to Aa3 reflects a third year of weaker operating performance, and the continuation of balance sheet and debt measures that are well below medians for the rating category. Total comprehensive debt (inclusive of unfunded pension liability and operating leases) is high, and the ongoing incremental increase in debt offsets some of the progress the organization has made in its growth of unrestricted cash and investments.