Emerging from bankruptcy protection without a bond default is a credit positive for Central Falls and other Rhode Island municipalities, according to Moody’s Investors Service.

“The confirmation is credit positive for the city because it concludes a 13-month bankruptcy period without reduced or mixed payments to general obligation bondholders,” Moody’s said in its weekly credit outlook, released Thursday. “Moreover, it is credit positive for other distressed Rhode Island cities because it shows a path to emerging from bankruptcy without defaulting on GO debt.”

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