Friday, November 1
City’s improved operating performance and reserve levels attributed to upgrade
Mayor Brett P. Smiley today announced that Fitch Ratings has upgraded the City’s outstanding General Obligation (GO) Bonds credit rating to A+ from A and assigned a “stable outlook.” This rating upgrade resulted from an annual review of the City’s financial profile by the rating agency.
“We have worked diligently to balance our financial operations while making strategic investments in our city’s future. Our recent rating upgrades are a testament to our responsible fiscal management, positioning our city for long-term success and lower interest costs,” said Mayor Brett Smiley. “We will continue to focus on making responsible investments that strengthen our financial position and benefit all Providence community members, ensuring a stable and prosperous future for our city.”
Fitch’s rating upgrade reflects the City’s strong financial management and consistent improvement in finances and reserve levels. In its report, Fitch highlights that “reserve levels have improved from negative levels in fiscal 2016 to 5.3% of spending for fiscal year-end 2023,” a goal the City achieved ahead of its planned deficit reduction schedule through diligent financial practices. Additionally, Fitch notes that “the City’s recent negotiation of payment-in-lieu-of-tax agreements with various tax-exempt institutions within the city will support new revenue growth, helping to offset future increases in the operating budget.”
Fitch’s review was conducted as part of the agency’s annual rating surveillance of the City’s credit. In addition to the GO Bond Rating upgrade, the City’s General Government and Issuer Default Ratings were upgraded to A- from BBB+.