Moody's Investors Service said it has downgraded to A1 from Aa3 the city of Warwick, R.I.'s general obligation rating, affecting approximately $69.8 million in GO debt outstanding.
The outlook remains negative.
At this time, Moody's has also affirmed the Aa3 underlying rating on the Rhode Island Health and Educational Building Corporation Series 2010A and Series 2010G public schools revenue bond financing program revenue bonds. The city is a pool participant in each series. All outstanding debt is secured by the city's general obligation, unlimited tax pledge.
The downgrade to A1 reflects the city's large tax base with slightly above average wealth levels, low debt burden and adequate financial position which has benefitted from underfunding its actuarial required pension contributions.
The negative outlook reflects the continued underfunding of the city's single employer Police Pension and Fire Pension Plan, which reports a total unfunded liability of $242 million.