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.

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