Fitch Ratings upgrades City of Woonsocket bonds to ‘BBB’

FOR IMMEDIATE RELEASE

June 30, 2016

Contact: Blake Collins, bcollins@woonsocketri.org, office: (401) 762-6400 ex: 2963, cell: (508) 838-3371

 

 

 

WOONSOCKET, RI: Mayor Lisa Baldelli-Hunt announced that Fitch Ratings has upgraded the City of Woonsocket’s outstanding General Obligation Bonds to ‘BBB’ with a Stable outlook. With this upgrade, Woonsocket’s bonds are now rated investment grade by Fitch for the first time since early 2012.

 

“The Fitch upgrade represents a positive step forward for the fiscal health of the City of Woonsocket,” said Mayor Lisa Baldelli-Hunt. “This achievement is the result of the hard work of members of this community and this administration. Earning this rating goes beyond instilling confidence in investors – it’s a positive signal to businesses and residents who are interested in moving to the City.”

 

Fitch cited improved fiscal oversight, stronger reserve levels, and financial flexibility in their report. Improved budget management leading to stabilization of the City’s general fund and the school fund, was also noted by Fitch.

 

The report stated, “an ongoing trend of financial improvement, including balanced combined general and school fund operations with continued full funding of required pension contributions, improved ending balances, and a stable liquidity position could lead to … improvement in the rating.”

 

Fitch reviews the City on an annual basis. In addition to upgrading the City’s bonds, Fitch has upgraded Woonsocket’s Issuer Default Rating (IDR) to ‘BB+’ from ‘BB-’. The GO bond rating at two notches above the City’s IDR reflects the enhanced recovery prospects for GO bondholders afforded by a statutory lien on pledged property tax revenues. Woonsocket is one of the first Rhode Island communities to be rated under Fitch’s revised criteria for U.S. state and local government credits, which was released on April 18, 2016.

 

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