Treasurer Diossa Announces Strong State Bond Ratings

Published on Monday, October 16, 2023

Fitch changed its Outlook to Positive from Stable on October 13, 2023

Providence, RI – Today, Rhode Island General Treasurer James A. Diossa announced that Fitch Ratings, Moody’s Investors Service, and S&P Global affirm positive ratings to the State of Rhode Island general obligation (GO) bonds.

“It is no surprise that the nation’s top three top rating services have delivered high ratings to the State of Rhode Island—this reaffirms our State’s ability to not only meet our financial obligations but to surpass them,” said General Treasurer Diossa. “Despite market instability, the strong financial performance is a reflection of the proactive fiscal management and effective leadership of the State of Rhode Island.”

Fitch Ratings has assigned a 'AA' (Positive) rating to the following State of Rhode Island GO bonds, noting $122.405 million consolidated capital development loan of 2023, series A (tax-exempt); $24.3 million consolidated capital development loan of 2023, series B (federally taxable). Noting that Rhode Island's 'AA' IDR and GO rating are based on cautious and prudent fiscal management and a moderate long-term liability position, partly offset by below-average long-term economic growth for a U.S. State. Fitch changed its Outlook to Positive from Stable on October 13, 2023.

Moody's Investors Service has assigned Aa2 (Stable) ratings to the State of Rhode Island's approximately $122.4million Consolidated Capital Development Loan of 2023, SeriesA (Tax-Exempt) and $24.3 million Consolidated Capital Development Loan of 2023,SeriesB (Federally Taxable). Noting that Rhode Island's stable outlook reflects the State's continuing adherence to practices requiring active financial management and budget balance, resulting in quick budget actions and satisfactory budget flexibility.

S&P Global Ratings assigned its 'AA' (Stable) long-term rating to the State of Rhode Island's estimated $111.7 million consolidated capital development loan of 2023, series A (tax-exempt), and estimated $28.41 million consolidated capital development loan of 2023, series B (taxable). Noting that the rating reflects their expectation that Rhode Island will continue to demonstrate strong financial management and budget oversight and will implement structural budget adjustments to manage projected out-year budget gaps, when necessary, while preserving balances in its budget reserve and cash stabilization account to meet its 5% statutory requirement, which they view as good and underpinning its financial stability.

The bonds will be sold through negotiation beginning on Monday, October 23 and continuing on Tuesday, October 24, 2023. New money proceeds will be used for various capital projects including educational facilities, affordable housing, and environmental projects. You may learn more about Rhode Island GO bonds here.

Treasurer Diossa will host the State’s first Investor Conference this Thursday, October 19. Attendees will hear directly from State leaders, budget and investment officials, and State agency leaders on investing in the Ocean State in advance of the October 23 and 24, 2023 sale of GO bonds.