North Providence, RI General Obligation Debt Upgraded To #AA-# From #A# On Improved Financial Position, Stronger Economy

Stocks and Financial Services Press Releases Wednesday March 8, 2017 09:37
BOSTON--8 Mar--S&P Global Ratings

BOSTON (S&P Global Ratings) March 7, 2017--S&P Global Ratings raised its long-term rating on the Town of North Providence, R.I.'s general obligation (GO) bonds to 'AA-' from 'A'. The outlook is stable. "The upgrade reflects our view of improvements in the town's financial position as well as stronger economic conditions," said S&P Global Ratings credit analyst Christina Marin.

A pledge of the town's full faith and credit secures the GO debt outstanding. The rating further reflects our assessment of North Providence's: Adequate economy, with access to a broad and diverse metropolitan statistical area (MSA); Adequate management, with "standard" financial policies and practices under our financial management assessment (FMA) methodology; Strong budgetary performance, with operating surpluses in the general fund and at the total governmental fund level in fiscal 2016; Adequate budgetary flexibility, with an available fund balance in fiscal 2016 of 5.2% of operating expenditures; Very strong liquidity, with total government available cash at 14.1% of total governmental fund expenditures and 3.3x governmental debt service, and access to external liquidity we consider strong; Very strong debt and contingent liability position, with debt service carrying charges at 4.2% of expenditures and net direct debt that is 12.0% of total governmental fund revenue, as well as low overall net debt at less than 3.0% of market value and rapid amortization, with 98.6% of debt scheduled to be retired in 10 years; and Strong institutional framework score.

The stable outlook reflects our view that North Providence's general fund financial position has stabilized, and that strong budgetary oversight and careful planning should translate into balanced operations in the future. The town's adequate economy and very strong liquidity contribute to stable credit conditions. Therefore, we do not expect to change our outlook in our two-year outlook horizon. We would consider a higher rating if the town builds reserves to levels we consider very strong, and if the town introduces more formal financial policies. We could lower the rating if the town returns to financial imbalance, leading to a draw on reserves.

Latest Press Release

mai welcomes real estate developer CMC on November 19

Market for Alternative Investment (mai) will list Chaoprayamahanakorn pcl, a leading real estate developer onNovember 19, under the ticker symbol "CMC". The company has a market capitalization at its initial public offering (IPO) of THB 3.00 billion...

KTC - Chilito Mexican Grill - Farm Factory provide members special privileges for payments made using QR Pay in the KTC Mobile app.

Mrs. Pranaya Nithananon, Vice President - Credit Card Business, "KTC" or Krungthai Card Public Company Limited, provides KTC VISA and KTC MasterCard credit card members who make payments through KTC QR Pay in the "KTC Mobile" app worth Bt. 300 or more...

Photo Release: KBank opens new flagship branch and THE WISDOM Lounge at ICONSIAM

Mr. Wirawat Panthawangkul (3rd from left), KBank Senior Executive Vice President, and Ms. Chadatip Chutrakul (4th from left), Director of ICONSIAM Co., Ltd., and Chief Executive Officer of Siam Piwat Co., Ltd., participated in the opening ceremony of...

Photo Release: CIMB Group Joins RippleNet to Power Instant Payments Across ASEAN

Tengku Dato' Sri Zafrul Aziz, Group CEO of CIMB Group (right), and Brad Garlinghouse, Ripple CEO (left) commemorating the strategic collaboration between CIMB Group and Ripple to power instant payments across ASEAN at the Singapore FinTech festival 2018...

CIMB Group Joins RippleNet to Power Instant Payments Across ASEAN

CIMB is one of the first banks to leverage blockchain technology to tap into region's USD120 billion remittance business CIMB Group ("CIMB" or "the Group") and Ripple have entered into a strategic collaboration to enable instant cross border payments...

Related Topics