December 9, 2021                                                                                                  

Moody’s Assigns Enhanced Bond Rating for Health and Educational Building Corporation’s Bonds for the City of Pawtucket

PAWTUCKET- On December 8, 2021 Moody’s Investor Services announced that it would be assigning an Aa3 enhanced rating to the RI Health and Educational Building Corporation’s Public Schools Revenue Bond Financing Program Revenues Bonds, Series 2022 A for $34 million to the City of Pawtucket’s bond.

A rating of Aa3 is the fourth highest rating a group can obtain through Moody’s out of 21 possible ratings and is described as high quality with very low credit risk.

Moody’s notes that the, “Aa3 enhanced rating is based on the mechanics of the Rhode Island Health and Educational Building Corporation (RIHEBC) Intercept Program (monthly pay), which is informed by the State of Rhode Island's (Aa2 stable) rating. The rating is also based on the projected debt service coverage by the City of Pawtucket's (A3) State Basic Education and State Housing Aid on RIHEBC obligations.”

“It is reassuring to have Moody’s Investor Services, one of the Big Three credit rating agencies, reaffirm the progress that is happening in our city,” said Mayor Donald R. Grebien. “As we continue moving forward, fiscal responsibility remains a top priority for my administration and we couldn’t have reached where we are without the support and commitment of the City Council, School Committee, School Department, and of course the taxpayers. Thank you to my Finance Director Joanna L’Heureux and her department for all of their work in keeping our City on the right track financially.”

Moody’s stated in their report that, “the stable outlook on the enhanced rating mirrors the outlook for the State of Rhode Island,” and that a factor that could lead to an upgrade of the rating further would rely on, “improvement in the State of Rhode Island's rating, resulting in an upgrade to the RIHEBC intercept programmatic rating.”

“This is exciting for us,” continued Mayor Grebien. “We look forward to the continuation of all the great work happening here in Pawtucket.”

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