NEW: RI Bonds Go From Negative to Stable

NEW: RI Bonds Go From Negative to Stable

Standard and Poor’s Rating Services (S&P) revised its ratings outlook to “AA” for Rhode Island’s general obligation bonds. Governor Chafee noted this as a step in the right direction for the state.

“This improvement in Rhode Island's outlook reflects Standard & Poor's confidence that the budget I have proposed to the General Assembly will continue to strengthen Rhode Island's government framework and it financial management.”

S&P assess these ratings off of 5 factors: Government, Financial Management, Economy, Budgetary Performance, Debt and other liabilities (including pension and OPEB).

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The state lags the most within the last factor. With only 48% of the pension currently funded, RI has serious liability issues. The S&P report warned that if the funding of the pension continued to fall, there would be a negative impact on the states rating. Treasurer Raimondo commented on the rating as well.

“There is still much work to be done, especially in the area of creating a stable and secure retirement system, but this confirmation and improvement will help ensure that the state will be able to enter the bond market later this spring on the most favorable terms possible."