Credit rating agency cites improved financial management and stable operations in ratings report
Central Falls – Credit rating agency Standard and Poor’s has affirmed Central Falls’ long-term bond rating at “BB,” one notch below investment grade, and affirmed its positive outlook. S&P’s most recent ratings report reaffirms consecutive rating and outlook upgrades in 2012 and 2015 respectively.
“S&P’s latest ratings report again confirms the positive work that we are doing in Central Falls,” said Mayor James A. Diossa. “We have worked hard to comeback from a difficult bankruptcy and restore a culture of fiscal responsibility and sound budgetary practices, which rating agencies have recognized. My administration is eager to continue to transform our community in ways that have earned the city consecutive upgrades by S&P over that last few years.”
S&P’s last rating action for Central Falls was in 2015, upgrading the city’s outlook to positive. In 2012, S&P upgraded the city’s bond rating to “BB” from C. Additionally, credit rating agency Moody’s, raised their rating of the city’s debt to “Ba3” from “B1” with a stable outlook. After today’s announcement, Central Falls has a “BB” long-term rating on its general obligation debt with a positive outlook.
“The positive outlook reflects our opinion of the city’s … improved financial management controls that we believe will likely be sustained and continue to translate into it maintaining stable operations,” said Standard and Poor’s credit analyst Victor Medeiros
Over the last two years, Mayor Diossa’s administration has fostered a culture of fiscal responsibility at city hall. During that time, strategic investments made by the city include the establishment of a Capital Improvement Fund, OPEB trust, and fully funding annual pension costs. Those investments in capital improvements and the pension fund work to ensure the long term fiscal health of Central Falls.