Woonsocket Makes the “Dean’s List” as Fitch Gives City All A’s GO and IDR Bond Ratings Upgraded to A+ and A-, Respectively With Stable Outlook
September 3, 2021
Contact: Mayor Lisa-Baldelli Hunt
lbaldellihunt@woonsocketri.org; 401-767-9205
Woonsocket Makes the “Dean’s List” as Fitch Gives City All A’s GO and IDR Bond Ratings Upgraded to A+ and A-, Respectively With Stable Outlook
WOONSOCKET, R.I.: Mayor Lisa Baldelli-Hunt announced today that Fitch Ratings has upgraded the City of Woonsocket’s General Obligation (GO) Bond Rating to “A+” from the previous investment grade “A” rating, and has upgraded the City’s Issuer Default Rating (IDR) to “A-“ from the previous investment grade “BBB+”. Fitch has also maintained a “Stable” rating outlook for the City. The City’s GO Bond Rating from Fitch is now ten steps higher than it was in 2014.
Mayor Baldelli-Hunt stated, “I am very proud of our bond rating upgrades from Fitch, especially since we have faced and overcome so many financial and operational challenges put to us by the nationwide COVID-19 pandemic. It has been a difficult time, but our commitment to strong fiscal management, conservative budgeting and efficient operations has helped us maintain Woonsocket’s positive direction.” The Mayor added, “Our bond rating upgrades affirm the strong fiscal foundation that we have built since our financial crisis and junk bond status eight years ago and they provide us momentum as we work to advance our forward-looking economic agenda in the post-COVID environment.”
Finance Director, Christine Chamberland, offered, “Our Fitch bond rating upgrades are a testament to our having worked hard to implement solid fiscal policies that emphasize streamlined City services and accountability. I am gratified that Fitch has recognized what we have accomplished in recent years in getting our finances in order and then keeping them on track during the pandemic.”
Mayor Baldelli-Hunt emphasized that though the City has investment grade bond ratings from both Fitch Ratings and Moody’s Investor Services there are no plans to issue any new GO debt. The City has instead paid down since 2013 approximately $67 million of existing General Obligation debt. The Mayor explained, “We are like a family who has a high credit rating but who avoids debt and pays cash for everything because we never again want to get in over our heads debt-wise as we were confronted with from the past. I view our high bond ratings as promotional tools to convey to potential businesses, investors and residents that we are a well-managed community that maximizes every tax dollar by operating conservatively.”
The Fitch report cited the City for a significantly improved financial profile over the past decade with positive operating margins, proactive expenditure control, improved liquidity levels and tax base growth.