Struggling Rhode Island city sees rating boost

AP News
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Posted: Dec 19, 2011 3:53 PM
Struggling Rhode Island city sees rating boost

A struggling Rhode Island city says a Fitch Ratings has upgraded its outlook after officials took steps to confront financial challenges.

Pawtucket city officials announced Monday that Fitch Ratings has upgraded its credit rating outlook from negative to stable.

In explaining the upgrade, Fitch noted that city officials successfully closed a multi-million dollar deficit in the city budget.

Fitch downgraded Pawtucket's credit rating a year ago. The city has struggled in recent years with stagnant revenue, mounting pension costs and an anemic economy.

Pawtucket Mayor Donald Grebien says the rating upgrade is a "gratifying" recognition of the work the city has done to stabilize its finances. But he cautioned that the city's financial struggles will continue for the foreseeable future.