Moody's Upgrades the City of East Providence's Bond Rating Status to A-rating

The City of East Providence now finds itself in an elite new category among Rhode Island municipalities according to Moody’s Investors Service. Announced today, Moody’s has officially upgraded the City of East Providence to an A-rated investment level. As recently as 2013, the City was considered to be in junk bond status carrying a high default risk. Not only has the City’s bond rating increased, it has jumped an unprecedented two steps, which is well above the norm for Moody’s. According to their report, “the City’s continued trend of financial improvement over the last three fiscal years has significantly increased its reserve and liquidity levels through adherence to its formal fiscal policies. Further, the rating reflects the reduction of the City’s unfunded liability in its self-administered pension plan as a result of improved funding practices.” City Manager Paul Lemont said, “Through hard work and financial discipline from the elected officials, City management and City employees, the City has elevated itself from junk bond status to the elite tier of A-ranked municipalities. This is what the taxpayers of East Providence deserve.”

This new bond rating for East Providence comes on the heels of a very positive 2014 financial audit, a 2015 zero tax increase for its residents, and the news that the City is operating with a significant surplus for the third straight year in a row. East Providence is also one of the few cities in the state to have fully funded its ARC for both pension and OPEB plans. Mayor Thomas Rose is very pleased with the City’s financial turnaround and attributes much success to a fiscally conservative budget, “On behalf of the City Council, I would like to express my great pleasure at this recognition by Moody’s of the remarkable financial turnaround which the City has undergone. This is a testimony to the dedication of my fellow City Council members and the City employees to careful fiscal management that keeps the needs of the residents’ first and foremost.”

The bond rating upgrade is in concert with East Providence’s emerging economic development that has utilized tools like a tax stabilization program to attract private investment. East Providence’s Moody’s bond rating upgrade should make the city even more attractive for business growth.