Providence's Bond Rating Improves For Second Time Within Fiscal Year

PROVIDENCE, RI — Providence's bond rating has increased for a second time in the same fiscal year, Mayor Brett Smiley said Thursday.

Moody's Investors Service reported a stable financial outlook after upgrading Providence rating from Baa1 to A3. In November 2022, Fitch Ratings increased the city’s credit rating to A, the first A rating the city has received from them since 2011.

"I am committed to building a strong financial future for the city of Providence, and today’s bond rating upgrade is another sign that we are on the right path to doing so," Smiley said. "My administration plans to continue this work in the years to come, making steady contributions to our pension fund while strategically investing in our city’s infrastructure that can improve the quality of life of our residents."

In its report, Moody’s noted, "The rating upgrade also incorporates sound fiscal management that includes an 11-year trend of pension contributions equal to the actuarial determined contribution reflecting the city's commitment to addressing its unfunded long-term pension liability."

Moody’s Investor Services review was conducted as a part of its annual surveillance of the city’s credit. In addition to the bond rating, the Providence Public Building Authority and Providence Redevelopment Agency lease revenue bonds were upgraded from Baa2 to Baa1.