Credit rating downgrades expected to continue across state
Providence, RI – Financial rating agency Moody's is predicting that Rhode Island communities will face more credit rating downgrades in 2012. In a report released today, Moody's cites the declining local economy, dropping property values, and rising pension liability for the likelihood of the additional downgrades, according to Bloomberg Business Week. With unemployment at 10.5 percent, the highest level in New England, as well as reduced state aid, Moody's says there is a 60 percent chance that the state will fall back into recession within six months.
Additionally, Fitch Ratings has revised Pawtucket's outlook from negative to stable, and affirmed the city's BBB bond rating. According to the Providence Journal, the city has made progress in meeting its pension's annual required contributions, and future budget relief from the pension reform is expected.
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