Fitch affirms West Warwick rating

WEST WARWICK – The town of West Warwick is holding its own, according to Fitch Ratings.
The agency recently affirmed BBB+ ratings for the town’s $14.1 million in general obligation bonds, and deemed the outlook as “stable.” The rating is only two notches above its junk bond status.
In affirming the BBB+ rating, Fitch said the town has managed its operating expenses and increased its reserve levels in fiscal 2010. The agency also said the town has made progress toward eliminating the School Department’s deficit spending.
Yet Fitch noted that wealth levels are below average and unemployment remains high. The agency also said West Warwick’s unfunded pension and other post employment benefit liabilities are very high.
“Fitch is concerned that the trend of reduced pension contributions from already inadequate levels will significantly increase financial pressure in the future,” the agency said in its report.