PROVIDENCE – Fitch Ratings, Moody’s Investors Service and S&P Global Ratings have each affirmed positive ratings of Rhode Island’s general obligation bonds, General Treasurer James A. Diossa recently announced.
Fitch changed its outlook to positive from stable on Oct. 13, assigning a “AA” rating to the $122.4 million consolidated capital development loan of 2023, Series A (tax-exempt) and the $24.3 million consolidated capital development loan of 2023, Series B (federally taxable), according to a news release.
Fitch said the ratings are based on “cautious and prudent fiscal management and a moderate long-term liability position, partly offset by below-average long-term economic growth for a U.S. state,” according to the release.
Moody’s Investor Service assigned a stable “Aa2” rating to both of the same consolidated capital development loans of 2023, noting the outlook reflects “the state’s continuing adherence to practices requiring active financial management and budget balance, resulting in quick budget actions and satisfactory budget flexibility,” according to the release.
S&P Global Ratings assigned its stable “AA” long-term rating to the state’s estimated $111.7 million consolidated capital development loan of 2023, Series A (tax-exempt) and estimated $28.4 million consolidated capital development loan of 2023, Series B (taxable), noting the rating reflects the organization’s expectation that “Rhode Island will continue to demonstrate strong financial management and budget oversight and will implement structural budget adjustments to manage projected out-year budget gaps, when necessary, while preserving balances in its budget reserve and cash stabilization account to meet its 5% statutory requirement,” which S&P views as “good and underpinning its financial stability,” according to the release.
The bonds will be sold through negotiation, which began on Monday and will continue on Tuesday. New money proceeds will be used for various capital projects, including educational facilities, affordable housing and environmental projects, according to the release.