PROVIDENCE – Rhode Island is well-positioned for the upcoming sale of its general obligation bonds after receiving stable ratings from all three major credit ratings agencies.
S&P Global Ratings and Fitch Ratings both recently affirmed their “AA” ratings for the state, while Moody’s Investors Service again issued an “Aa2” rating.
The 2021 bonds are slated to be sold on April 20 to help finance a host of capital improvement projects related to education, environment and infrastructure approved in a special election in March.
Moody’s in its April 7 report cited the state’s “strong financial management practices, including multiyear financial planning, consensus revenue forecasting and consistent maintenance of reserves” as reason for its rating. However, the agency noted these strengths are offset by economic woes coming out of the COVID-19 pandemic and “high relative combined debt and pension liabilities.”
S&P Global Ratings credit analyst Thomas Zemetis in the agency’s April 7 report also pointed to the state’s “strong budget framework and good financial management, historically steady budgetary performance and stabilizing reserve and liquidity position” as reason for its credit rating.
R.I. Treasurer Seth Magaziner in a statement highlighted the importance of these strong ratings not only in the upcoming bond sale but in long-term economic growth efforts.
Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.
