NEW YORK – The R.I. Convention Center Authority’s $72 million 2009 series A refunding revenue bonds have received an A+ rating from Fitch Ratings.
The rating service also affirmed the AA- rating on the state’s outstanding general obligation bonds and the A+ rating on the state appropriation-backed lease participation certificates and the Convention Center Authority’s revenue bonds.
Fitch, however, lowered its rating outlook on those certificates and bonds from “stable” to “negative” because of the “deterioration in Rhode Island’s economic performance.”
Indeed, in its report, Fitch painted a bleak picture of the state’s fiscal situation.
The agency acknowledged Gov. Donald L. Carcieri’s effort to close the $370 million deficit for the current state budget. But it noted that another state deficit is projected for 2010, and pegged the projected fiscal 2010 shortfall at about $510 million.
“Rhode Island’s recent economic performance has been amongst the weakest of the states and the trend is negative,” Fitch said. “The state has one of the most stressed real estate markets in the country, fueled by subprime delinquencies, and has lost jobs every month since August 2007.”
The authority’s $72 million 2009 series A refunding revenue bonds are being issued this week to refund outstanding 2001 series A variable rate refunding revenue bonds and finance an associated swap termination payment.
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Fitch Ratings Ltd. is an international credit-rating agency with headquarters in New York City and London. Additional information, including Fitch’s scores for Rhode Island and other state and municipal bonds, is available at www.FitchRatings.com.
The R.I. Convention Center Authority, established by the R.I. General Assembly in 1987, manages and operates the R.I. Convention Center, the Dunkin’ Donuts Center-Providence and related facilities, including the Convention Center parking garage. To learn more, visit www.RIConvention.com.
