Pawtucket’s credit rating upgraded by Moody’s

A flag flies in front of Pawtucket City Hall. Moody’s Investors Service last week upgraded Pawtucket’s credit rating two notches from Baa2 to A3.
A flag flies in front of Pawtucket City Hall. Moody’s Investors Service last week upgraded Pawtucket’s credit rating two notches from Baa2 to A3.

PAWTUCKET – Moody’s Investors Service last week upgraded Pawtucket’s credit rating two notches from Baa2 to A3, the agency’s seventh-highest rating.
Additionally, the credit rating agency upgraded two R.I. Health and Educational Building Corp. pool financing the city participates in to A1 from A3. The latter relates to a series 2006A and 2009D bonds. The upgrades affect about $50 million in debt.
Moody’s cited an improved financial position, low taxpayer concentration and a high state-level reimbursement for debt service as credit strengths for the city. High fixed costs, including pension, other post-employment benefits and debt services, along with low wealth and income indicators and signs of increasing debt, were flagged as credit challenges. It also cited weak tax base growth.
The credit rating agency reports that sustained increase in reserve levels, improvements in wealth and income indices and a reduction in overall long-term liabilities related to pension and OPEB could lead to further credit upgrades. A decline in reserve levels, however, along with increases in debt and pension costs and sustained contraction of the city’s tax base could lead to a credit downgrade.

No posts to display