Standard & Poor's Ratings Services said that it raised its unenhanced rating on East Providence, R.I.'s general obligation debt to A from BB-plus.
The outlook is stable.
"The higher rating is based on our recently released local GO criteria, as well as the city's improving financial performance and liquidity position and lower long-term pension liabilities," said Standard & Poor's credit analyst Victor Medeiros.
In addition, the city has significantly bolstered financial management controls following the state's implementation of a budget commission.
While the budget commission has since been relieved of its duties, there remains strong active state oversight that will translate into East Providence maintaining stable budgetary performance. Its departure will test the city's ability to manage on its own over the next several years.
