S&P affirms Central Falls’ positive bond rating outlook

Credit rating agency cites improved financial management and stable operations in
ratings report

Central Falls – Credit rating agency Standard and Poor’s has affirmed Central Falls’
long-term bond rating at “BB,” one notch below investment grade, and affirmed its
positive outlook. S&P’s most recent ratings report reaffirms consecutive rating and
outlook upgrades in 2012 and 2015 respectively.

“S&P’s latest ratings report again confirms the positive work that we are doing in
Central Falls,” said Mayor James A. Diossa. “We have worked hard to comeback from a
difficult bankruptcy and restore a culture of fiscal responsibility and sound
budgetary practices, which rating agencies have recognized. My administration is
eager to continue to transform our community in ways that have earned the city
consecutive upgrades by S&P over that last few years.”

S&P’s last rating action for Central Falls was in 2015, upgrading the city’s outlook
to positive. In 2012, S&P upgraded the city’s bond rating to “BB” from C.
Additionally, credit rating agency Moody’s, raised their rating of the city’s debt
to “Ba3” from “B1” with a stable outlook. After today’s announcement, Central Falls
has a “BB” long-term rating on its general obligation debt with a positive outlook.

“The positive outlook reflects our opinion of the city’s … improved financial
management controls that we believe will likely be sustained and continue to
translate into it maintaining stable operations,” said Standard and Poor’s credit
analyst, Victor Medeiros.

Over the last two years, Mayor Diossa’s administration has fostered a culture of
fiscal responsibility at city hall. During that time, strategic investments made by
the city include the establishment of a Capital Improvement Fund, creating an OPEB
trust, and fully funding annual pension costs. These investments in capital
improvements and the pension fund work to ensure the long-term fiscal health of
Central Falls.