Fitch Ratings removed the general obligation bond rating of West Warwick, R.I., from rating watch negative and assigned a stable outlook.
Fitch, in a June 10 statement, affirmed its BBB-minus rating for the town.
The move affects the following bonds: $5.8 million of Series 2002A, $3.5 million of Series 2007 and $1.2 million of Series 2005.
According to Fitch, the stable outlook reflects the town's recent success in achieving "substantial" benefit concessions by employees and retirees. Voters in 29,000-population West Warwick approved the changes last month along with the town's fiscal 2015 budget.
West Warwick lies 11 miles south of capital city Providence.
Fitch said the rating, barely above investment grade, reflects the town's limited control over resources, as exemplified by a charter requirement for voter approval of annual budgets and the risk of budget overspending by the school department. "These conditions could complicate the town's efforts to maintain budget stability and improve the exceptionally weak funding of its long-term liabilities," Fitch said.
