Moody’s upgrades City of Woonsocket bonds to ‘Ba3’
Posted on: September 29, 2016 - 4:32pm
FOR IMMEDIATE RELEASE
September 29, 2016
Contact: Blake Collins, bcollins@woonsocketri.org, office: (401) 762-6400 ex: 2963, cell: (508) 838-3371
Moody’s upgrades City of Woonsocket bonds to ‘Ba3’
Multi-step upgrade marks second consecutive upgrade to City’s debt in two years
WOONSOCKET, RI: Mayor Lisa Baldelli-Hunt today announced that Moody’s Investors Services has upgraded the rating of the City of Woonsocket’s outstanding General Obligation Bonds for the second time in two years. The rating upgrade to ‘Ba3’ with a Stable outlook comes on the heels of a multi-step upgrade by Fitch in June.
“Our City’s latest bond rating upgrade by Moody’s is another signal that our community is in the midst of a significant turnaround,” said Mayor Lisa Baldelli-Hunt. “A strong bond rating is an important statement to the business community that will positively affect future investment in the City of Woonsocket. This great news is the result of years of hard work by City residents and City employees who have invested their time and energy into our community”
Moody’s attributed the City’s improved financial condition to stronger fiscal policies and management, conservative budgeting, improved levels of liquidity, and a commitment to fully funding the annual required contribution for the public safety pension plan. The credit rating agency also revised the outlook of the City’s debt to Stable.
“The stable outlook reflects our expectation that the City will maintain structurally balanced operations,” stated the Moody’s report. “Liquidity has improved the past three years, and we expect the City will be able to meet its obligations without deferring expenses and without relying on any form of cash flow borrowing.”
Moody’s reviews the City’s credit rating on an annual basis. Prior to today’s announcement, Moody’s last ratings action for Woonsocket was an upgrade to ‘B2’ from ‘B3’ in 2015. The Moody’s report also noted factors that could lead to a future rating upgrade including growing General and School fund reserves and continuing to fund annual pension contributions.
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