Moody’s affirms city’s Baa1 bond rating

PROVIDENCE – Moody’s Investors Service has affirmed the city’s Baa1 rating on its outstanding general-obligation bonds, Mayor Jorge O. Elorza announced Oct. 7.

The Moody’s report listed the city’s tax base, location and declining unemployment rates as strengths, while the accumulated fund balance, long-term liabilities and lack of a multiyear capital plan have had a negative impact.

The report takes into account that although the city’s deficit must be eliminated by 2021, the intention of city management is to return to a positive fund balance by the end of 2018. It also recognizes that the city has been paying the full required contribution to its pension plans; has been able to achieve savings in health care and long-term costs; and has initiated a capital planning group.n

No posts to display