PROVIDENCE – Fitch Ratings and S&P Global have affirmed their respective A- and BBB+ ratings for the city of Providence’s general obligation bonds, the city announced Monday.
Both reports note the city’s success in managing expenses in line with natural revenue growth, which have led to surplus results in recent fiscal years and eliminated a negative general fund balance. However, the ratings agencies also noted the elevated long-term costs of retiree pensions as a continued budget burden, along with the hit from COVID-19.
Fitch also affirmed its BBB rating for the city’s Issuer Default Rating for credit. The general obligation bonds were rated more highly because of enhanced recovery prospects for bondholders from a statutory lien on pledged property tax revenue, the agency stated.
Nancy Lavin is a staff writer for the PBN. Contact her at Lavin@PBN.com.
