Moody’s Investors Service has improved its outlook on East Providence, R.I., to stable from negative, while affirming its Ba1 general obligation bond rating. The move affects $28.7 million of outstanding parity debt.
Concurrently, the agency also confirmed the Baa2 rating, also with a stable outlook, on the Rhode Island Health and Education Building Corp.’s Series 2007C bonds.
“Assignment of the stable outlook reflects Moody’s belief that the city’s demonstrated progress in addressing its structural challenges will provide near-term stability to its credit quality,” the rating agency said.
Moody’s also said the recent appointment of a state-appointed budget commission was a factor in its rating.