FITCH RATINGS AFFIRM THE CITY’S BOND RATING REMAINS A+ SINCE LAST RATING IN 2021
PAWTUCKET – Mayor Donald R. Grebien announced that the city has been informed by its financial advisor, that Fitch Ratings has reaffirmed the City of Pawtucket’s outstanding General Obligation (GO) Bonds, with a rating of ‘A+’ and a stable outlook.
In addition to the City’s high GO Bond rating, Fitch has reiterated Pawtucket’s underlying rating or, as Fitch terms it, Issuer Default Rating (IDR) as ‘BBB+’. According to Fitch, the GO bond rating is two steps above the IDR, which reflects the enhanced recovery prospects for GO bondholders afforded by a statutory lien on pledged property tax revenues.
The rating comes after yet another thorough review of the City’s financial and managerial operations by the rating agency earlier this month. The continuous high ratings will allow for a lower cost of borrowing for the City on future debt.
“Nearly fourteen years ago, when I took office, our City was in a drastically different place. We were on the brink of bankruptcy and state takeover with little to no investment in our community or its future” said Mayor Donald R. Grebien.
“I am greatly encouraged that Fitch recognized, once again, the real progress we continue to make to improve the City’s fiscal health. Working collaboratively with the City Council, we have provided the thorough fiscal management our city needs. We are creating real results for the taxpayers and moving Pawtucket forward.”
Finance Director Mark Stankweicz said, “Our A category rating factors in the City’s steady management principles and improved fiscal health. The rating also includes our conservative approach to debt.”