Pawtucket, R.I., received a two-notch upgrade from Moody's Investors Service from Baa2 to A3. Moody's cited the 71,000-population city's "improved and stabilized financial position."
A3 is its seventh-highest rating, and cities with this rating are subject to low credit risk, Moody's said in a Sept. 19 statement.
Moody's also upgraded the rating to from A3 to A1 on two Rhode Island Health and Educational Building Corp. pool financings in which the city participates. They relate to Series 2006A and 2009D bonds.
The rating action affects roughly $50 million in debt. Pawtucket sits five miles north of state capital Providence.
Moody's said its new rating also considers Pawtucket's moderate-sized tax base, weak wealth and income indices, diverse tax base, and elevated fixed costs comprised of other post-employment benefits, debt service and required pension costs.
