North Providence, R.I., Upgraded to Baa1 by Moody's

Moody's Investors Service has upgraded the town of North Providence, R.I.'s underlying general obligation rating to Baa1 from Baa2 and revised the outlook to positive from stable, affecting $30.2 million in debt.

The upgrade to Baa1 reflects the town's improving financial position characterized by its third consecutive year of surplus operations in fiscal 2012 and recently reduced pension liability due to the deposit of one-time revenues received from a federal settlement with Google Inc. (senior unsecured rating of Aa2/stable). The rating also incorporates the town's moderately-sized tax base with average income levels and a manageable debt burden.

The positive outlook reflects the belief that the town will continue to improve its financial operations in fiscal 2013 and beyond, including the full payment of its annually required contribution (ARC) to its pension plans and the projected elimination or further reduction of cash flow borrowing going forward.

For reprint and licensing requests for this article, click here.
MORE FROM BOND BUYER