East Providence gets credit rating upgrade from Moody’s

EAST PROVIDENCE – Moody’s Investor Service has upgraded East Providence’s credit rating for its general obligation debt from A2 to A1, the city announced on Monday.

The ratings service said that the upgrade reflects “strong cash and fund balance levels, low debt burden and new management structure,” Moody’s said.

An A rating by Moody’s indicates an upper medium grade obligation subject to very low credit risk, according to the service.

The report also reflected new commercial and residential growth, along with the city’s redevelopment of its waterfront.

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The service removed the city’s credit outlook. It had been rated as stable.

The COVID-19 pandemic was not a key driver for the service’s rating action, the report noted. Moody’s said challenges the city may face are above-average pension liabilities that elevated fixed costs.

Moody’s also noted that it is monitoring the impacts of the coronavirus and if it affects the city’s credit quality, it will update the city’s rating and outlook. 

“We are fortunate that our city’s fiscal discipline and strong financial-management practices have been acknowledged,” Mayor Roberto L. DaSilva said. “That being said, there’s more work to do and I have full confidence that my office, together with our City Council, will work to address and overcome any challenges the economy will bring and will continue to work towards a timely and strong economic recovery.”