This week started lower for general markets, but there was some mid-week news that pushed bond yields to highs not seen in years. The Federal Reserve s meeting minutes were released on Wednesday, causing the markets to head lower, while not offering up much new information regarding the timeline for tapering. The sentiment of the meeting was that tapering may begin in the fall, but the amount will depend on employment and other economic data. Though the minutes didn t help equity markets, they did push yields on 10-Year Treasuries to a two-year high of 2.89%, which came down slightly by the end of the week. Here, we highlight Moody's recent upgrades and downgrades seen over the week:

Upgrades

• Wyandanch Union Free School District, NY: Moody s has upgraded this school district s underlying rating to Baa3 from Ba1. The upgrade to Baa3 reflects the district's improved, but still narrow, financial position evidenced by four years of operating surpluses, modest tax base with value decline, and average debt burden.
• Successor Agency to the Alameda County Redevelopment Agency, CA: Moody s upgraded this successor agency s Series 2006A Tax Allocation Bonds (TABs) to Baa2 from Ba1. The bonds were previously on review for downgrade. The upgrade reflects the ample semi-annual debt service coverage provided by the total incremental revenues available to the successor agency for tax increment debt service coverage. Also contributing to the upgrade is the large total acreage of the project area securing the debt; the very large incremental assessed valuation (AV); and the high income levels in the county.
• Successor Agency to the Westminster Redevelopment Agency, CA: Moody s upgraded this successor agency s Series 2008 and 2009 Tax Allocation bonds (TABs) to Baa3 from Ba1. The upgrade reflects the ample semi-annual debt service coverage provided by the total incremental revenues available to the successor agency for total tax increment secured debt service coverage. Also contributing to the rating is the large total combined acreage of the project areas securing the debt, the very large incremental assessed valuation (AV); and the low taxpayer concentration of the five project areas.
• Embry Riddle Aeronautical University, FL: Moody s has upgraded the long-term rating on this Aeronautical University's bonds to Baa1 from Baa2. The rating upgrade is supported by a combination of continued revenue growth, solid cash flow, material growth in flexible reserves fueled by retained surpluses, and modest but steady debt reduction achieved over the past several years.
• Indianola Community School District, IA: Moody s upgraded this school district s general obligation debt to Aa3 from A1. Moody s has also assigned an Aa3 rating to the district's $10 million General Obligation School Bonds, Series 2013. The Aa3 general obligation rating is based on the district's moderately-sized tax base benefiting from its proximity to Des Moines (GO rated Aa1); strong financial operations characterized by recent growth in reserves to satisfactory levels; and elevated debt burden with additional borrowing plans.

Downgrades

• Twin Falls School District, ID: Moody s downgraded this school district s Series 2006 General Obligation Bonds to A1 from Aa3. The downgrade primarily reflects the district's recent inability to balance financial operations without drawing reserves. As a result, reserves narrowed to levels well below similarly rated school districts nationally. The rating also incorporates the district's sizeable and growing tax base and below average wealth indices and modest debt burden.
• Reed City School District, MI: Moody's downgraded this school district s outstanding general obligation unlimited tax bonds to Baa1 from A2. The downgrade to the Baa1 rating reflects the district's very weak financial position and trend of operational imbalance. The Baa1 rating also incorporates the district's recent stabilizing student enrolment trend, modestly-sized tax base with below average socioeconomic indices, and minimal debt burden with below average principal repayment.
• New York State Housing Finance Agency, NY: Moody s downgraded this Housing Finance Agency s long-term rating from A2 to Aa3 and affirmed VMIG 1 the short-term ratings assigned to New York State Housing Finance Agency Housing Revenue Bonds (80 DeKalb Avenue Project), 2008 Series A, 2009 Series A and 2009 Series B. The ratings are based upon the direct pay letter of credit provided by Landesbank Hessen-Thuringen Girozentrale and the structure and legal protections of the transaction, which provide for timely payment of debt service and purchase price to bondholders.
• New York Law School, NY: Moody s has downgraded this law school s underlying rating to Baa1 from A3, affecting $131.9 million of Series 2006A, B-1 and B-2 revenue bonds issued through the New York City Industrial Development Agency. The downgrade is based on the school's enrollment and accompanying net tuition revenue declines, which are expected to drive weakening of operating performance and erosion of financial resources.
• Salinas Elementary School District, CA: Moody s has downgraded this school district s outstanding general obligation bonds to A2 from A1. The downgrade primarily reflects the district's extremely narrow liquidity due to state funding deferrals and the district's inability or unwillingness to balance financial operations.
• Haverford College, PA: Moody's has downgraded the ratings on Haverford College's long-term bonds to Aa3 from Aa2 and lowered the ratings on short-term debt to Aa3/VMIG 1 from Aa2/VMIG 1. Haverford College's Aa3 rating reflects a prominent market position with strong student demand, proven fundraising ability, healthy monthly liquidity to support operations and daily liquidity. Offsetting these factors are weak endowment recovery and thin expendable financial resources relative to Aa-rated peers, stagnant net tuition revenue, thinning operating margins, and a needs blind student aid policy requiring greater reliance on endowment spending.
• Bridgeport, CT: Moody's downgraded this city s outstanding general obligation bonds to A2 from A1. The outlook has been revised to negative from stable. The downgrade reflects the city's very narrow financial position following a draw on reserves in fiscal 2012, as well as ongoing pressure from long-term liabilities and a sizeable deficit in the city's Internal Service Fund. The A2 rating also incorporates the city's sizeable tax base with below average socioeconomic indices, and highly leveraged debt profile.
• Cook Country, IL: Moody's downgraded this county s general obligation debt to A1 from Aa3. The outlook remains negative. The downgrade of the GO rating reflects Cook County's growing pension liabilities due to, in part, a statutory funding requirement that is not tied to the health of the County Employees' and Officers' Annuity and Benefit Fund of Cook County (the Fund), resulting in a growing disparity between the fund's actuarially required contribution (ARC) and its actual employee and employer contributions.