Woonsocket gets 2-step upgrade in bond rating

WOONSOCKET — Mayor Lisa Baldelli-Hunt recently announced that Fitch Ratings has upgraded the City of Woonsocket’s outstanding General Obligation Bonds two steps to ‘A’ from ‘BBB+’ and has continued to assign the city a positive outlook.

The city’s General Obligation Bonds are now rated nine steps higher by Fitch than they were at the beginning of fiscal year 2015, and it is the first time since 2010 that Woonsocket’s bonds have carried an ‘A’ rating from Fitch.

“An ‘A’ bond rating is something for Woonsocket to celebrate,” noted Mayor Baldelli-Hunt. “The high bond rating reflects the confidence of a respected financial institution that we are continuing to do the right things to keep our fiscal house in order, and represents yet another testament to the effort and dedication of everyone in my administration to move our city forward. I want to thank all of our taxpayers for helping the city weather the storm through some

very trying times, and I want to emphasize to them that though our bond rating is much stronger than it was, my administration has not incurred any additional general obligation debt, nor do I intend to do so.”

The mayor offered that the high bond rating will instead be a promotional tool for the city, “Our ‘A’ rating conveys financial stability and sends a strong signal that Woonsocket is an attractive and financially sound place to live, work and do business.”

City Director of Finance Christine Chamberland felt gratified that “Fitch recognized everything that our department has done in such a short period of time to get our finances in order, as well as all we are doing to keep them that way.”

Brad Peryea, School Director of Finance, echoed Chamberland by stating, “The ‘A’ bond rating reflects positively on what we have accomplished with school operations when only a few years ago we were running multi-million dollar deficits. We are now running a fiscally conservative school department and it’s good to see that a major rating agency like Fitch acknowledges our efforts.”

Baldelli-Hunt added, “We are very fortunate to have City and School Finance Directors like Chris and Brad who not only know what they are doing, but who are willing to put in long hours with their departments to make sure that Woonsocket’s financial ship is being steered in the right direction. The city and school finance teams now work hand-in-hand to the benefit of the city as a whole, and I congratulate them for helping us achieve the ‘A’ bond rating.”

As detailed in the Fitch report, the bond rating upgrade to ‘A’ “reflects improved expenditure flexibility and positive general fund and school fund operations. Fitch believes the city’s financial profile has stabilized as evidenced by positive operating margins for both the city and school department the past three fiscal years, improved liquidity levels and positive growth in the city’s tax base. Projections for fiscal 2018 also point to likely positive results. “The Rating Outlook remains Positive and reflects the expectation of positive fiscal trends and continued financial stability.”