CITY OF PAWTUCKET RECEIVES INCREASE IN BOND RATING FROM FITCH RATINGS AND MOODY’S RATINGS
PAWTUCKET – Mayor Donald R. Grebien today announced that the city’s bond rating has been reaffirmed by Moody’s Ratings and upgraded two notches by Fitch Ratings.
The City’s bond rating is similar to an individual’s credit score and impacts the interest rate at which investors buy the City’s bonds, providing funding for major capital projects.
Fitch Ratings, one of four national rating agencies, has upgraded the City two notches, from an A- to an A+, with a stable outlook.
Moody’s has reaffirmed the City’s A3 issuer rating stating that the ” issuer rating reflects the city’s economy that has been stable” and that they “anticipate modest surpluses in fiscal 2024 and 2025. The city’s leverage position is manageable and includes a 273% long-term liabilities ratio consistent with the national median for A-rated cities and counties.”
These ratings came after a more thorough review of the city’s financial and managerial operations by both rating agencies earlier this month. The review was conducted in preparation for the City’s upcoming borrowing for school projects, which the Rhode Island Health and Educational Building Corporation is handling. The continuous high ratings will allow for a lower cost of borrowing for the City on future debt.
“These strong bond ratings have a lot to say about our City’s financial status,” said Mayor Donald R. Grebien. “These scores are representative of the positive work taking place here, whether it is in building new schools, ambitious economic development projects, or investing in our roads and infrastructure. Pawtucket continues to move forward.”
“We are greatly encouraged that Fitch and Moody’s recognized, once again, the real progress we continue to make to improve the City’s fiscal health,” said Finance Director, Mark Stankiewicz. “Working collaboratively with the City Council, the Administration is committed to stable fiscal management and continuity that will provide the most effective and efficient services for our residents and taxpayers.”
