Markets

The upgrade "reflects material strengthening of the state's financial resilience and budget management, particularly over the past two biennia," the rating agency said.

The decision follows months of turmoil that left the city without an approved budget well into the new fiscal year, said Moody's analyst Douglas Goldmacher.

Outflows from municipal bond mutual funds receded as investors pulled $1.090 billion out of funds in the latest week, versus the $3.416 billion of outflows the prior week, according to Refinitiv Lipper data.

Richmond issued $154.1 million in pension obligation bonds in a refunding that terminates swaps, ends a county intercept, and extends the final maturity.

Tollway revenue in the first half of 2022 surpassed pre-pandemic 2019 levels in five of the months.

The Kentucky State Property and Buildings Commission deal will fund capital improvements and public projects across the state.

The Investment Company Institute reported $2.527 billion of outflows from muni bond mutual funds in the week ending Aug. 31 compared to $765 million of outflows the previous week.

"The outlook for future economic growth remained generally weak, with contacts noting expectations for further softening of demand over the next six to twelve months," the Fed said Wednesday in its Beige Book report.

The muni market may get a temporary boost of support this week as investors received $18 billion of maturing and called bond proceeds on Sept. 1.

Moody's dropped the city's rating a notch to A3 and kept a negative outlook on the credit. Persistent structural deficits and pension liabilities were factors.