R.I. Convention Center bonds rated ‘A+’

NEW YORK – Fitch Ratings Ltd. today assigned an “A+” rating, but a negative ratings outlook, to the R.I. Convention Center Authority’s $500,000 in 2009 Series B re-funding revenue bonds.
The bonds are the federally taxable series of an offering that also includes $72 million in Series A re-funding revenue bonds, to which Fitch last week assigned the same “A+” rating and negative outlook.
The bonds are being issued to re-fund RICCA’s outstanding 2001 Series A variable-rate bonds and finance an associated swap-termination payment. The ratings agency said its “A+” score for the RICCA re-funding bonds was “based on the credit quality of the state, as security for the bonds derives from lease rental payments made by the state, subject to annual appropriation. The rental payments are absolute and unconditional, not subject to abatement and not dependent on state occupancy or use of the leased facility.”
The negative outlook – which Fitch also assigned to the state’s outstanding general obligation (GO) and appropriation-backed bonds, although it maintained their ratings of “AA-“ and “A+,” respectively – “reflects deterioration in Rhode Island’s economic performance and outlook in recent months in the context of an already severely strained financial position,” the ratings agency said.
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.
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.