CENTRAL FALLS – Standard and Poor’s Rating Services upgraded the city’s long-term bond credit rating to BB with a stable outlook, Gov. Lincoln D. Chafee announced last week.

The governor said in a statement that the upgrade is a “marked improvement” from the previous rating of C with a “developing” outlook. Additionally, it brings the city much closer to investment grade.

S&P said the upgrade reflects “active state oversight of the city’s financial operations and an approved six-year operating plan that maintains structural balance after the city emerged from Chapter 9 bankruptcy without defaulting on its long-term general-obligation debt.”

The statement cited staffing and city-service reductions, along with changes to the Central Falls pension benefits and tax increases as necessary for the city’s long-term financial health.

“The difficult decisions that have been made and the hard work of everyone involved are paying off, as we are now seeing with positive indications such as the Moody’s upgrade last month and this S&P upgrade,” Chafee said. “There is a brighter future ahead for Central Falls.” •