Moody’s upgrades City of Woonsocket bonds to ‘Ba3’

Multi-step upgrade marks second consecutive upgrade to City’s debt in two years

WOONSOCKET, RI: Mayor Lisa Baldelli-Hunt announced that Moody’s Investors
Services has upgraded the rating of the City of Woonsocket’s outstanding General
Obligation Bonds for the second time in two years. The rating upgrade to ‘Ba3’ with
a Stable outlook comes on the heels of a multi-step upgrade by Fitch in June.

«Our City’s latest bond rating upgrade by Moody’s is another signal that our
community is in the midst of a significant turnaround,» said Mayor Lisa
Baldelli-Hunt. «A strong bond rating is an important statement to the business
community that will positively affect future investment in the City of Woonsocket.
This great news is the result of years of hard work by City residents and City
employees who have invested their time and energy into our community»

Moody’s attributed the City’s improved financial condition to stronger fiscal
policies and management, conservative budgeting, improved levels of liquidity, and a
commitment to fully funding the annual required contribution for the public safety
pension plan. The credit rating agency also revised the outlook of the City’s debt
to Stable.

«The stable outlook reflects our expectation that the City will maintain
structurally balanced operations,» stated the Moody’s report. «Liquidity has
improved the past three years, and we expect the City will be able to meet its
obligations without deferring expenses and without relying on any form of cash flow
borrowing.»

Moody’s reviews the City’s credit rating on an annual basis. Prior to today’s
announcement, Moody’s last ratings action for Woonsocket was an upgrade to ‘B2’ from
‘B3’ in 2015. The Moody’s report also noted factors that could lead to a future
rating upgrade including growing General and School fund reserves and continuing to
fund annual pension contributions.