WARWICK – A recent upgrade in its municipal bond rating is expected to save the City of Warwick $1.4 million in future interest payments on general obligation refunding bonds it sold last week, according to Mayor Scott Avedisian.
Rates for the city’s other outstanding bonds range from 4.55 percent to 5.7 percent. But in last week’s issue, the city sold $19.26 million in bonds – intended to finance various municipal projects – at an interest rate of 3.19 percent.
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That lower rate was related to a decision by rating agency Standard & Poor’s to raise the city’s rating from “A+” to “AA-.”
“The bond-rating upgrade is a significant achievement, because it moves to the city into the ‘AA’ category,” Avedisian said. “With concerns about the economy on everyone’s minds, I am particularly proud that our continued efforts to protect the fiscal integrity of our city are paying such dividends.”
In its report, S&P cited the city’s “good socio-economic characteristics” and “its diverse local economy, which serves as one of the state’s primary commercial and retail centers.” The agency also mentioned Warwick’s “strong tax base and wealth levels … consistent financial performance and position, with good reserve levels; and manageable bonded debt, with above-average amortization rates and limited-future capital needs.”
Standard & Poor’s, a member of The McGraw-Hill Cos., is a provider of financial research, credit ratings and risk analysis. Additional information, including S&P scores for Rhode Island and other bonds, is available at www.standardandpoors.com.
For news and information from the City of Warwick, visit www.warwickri.gov.
