government

Woonsocket bonds dropped to ‘junk’

Posted 3/9/12

WOONSOCKET – Fitch Ratings dropped $117.8 million of general-obligation bonds issued by Woonsocket three steps to below investment grade, or “junk.”

An estimated $7.3 million deficit, about 7.6 percent of the city’s general fund, is projected for the fiscal 2012 school budget, following a deficit in the previous year. That reflects “deficiencies in internal fiscal controls,” Fitch said Thursday in a statement. The company lowered Woonsocket’s rating to BB-, down from BBB-, the lowest investment grade.

“Fitch has concerns about the city’s and school department’s ability to implement changes that will meaningfully improve financial stability given that previous efforts have not always yielded intended results,” according to the statement. The company maintains a negative outlook on the credit.

The 2012 deficit “surfaced precipitously” and is mostly related to employment spending, according to Fitch. The city’s alternatives to close the gap include a supplemental property tax, a $3.2 million tax-anticipation note sale and spending cuts such as payroll reductions, the company said.

About 22 percent of Woonsocket’s 41,200 residents live in poverty, U.S. Census Bureau figures show.

Nearby Central Falls entered bankruptcy in August, citing employee expenses it could not afford.

No comments on this story | Add your comment
Please log in or register to add your comment
Calendar
PBN Hosted
Events

Register today for the First Annual PBN Manufacturing Awards Dinner and Ceremony, Thursday, April 24th, at the Bryant University Bello Center. Click here for more information, including the list of winners.
  • Business Women
    Accomplished. Confident. Wicked Smart. Nominate women you know who deserve speci ...
  • 40 Under Forty
    It's the 10th Anniversary of 40 Under Forty, and PBN is planning a special event ...
  • Healthiest Employers
    Enrollment now open for the 2014 Healthiest Employers Program. Please take a mom ...
Advertisement
Purchase Data
Book of Lists
Lists
Book of Lists cover
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  •  
  • Purchase an e-File of the entire Book of Lists database
  •  
  • Purchase a printed copy of the Book of Lists
  •  
    National
    Local
    Latest News