Fitch Affirms Rhode Island’s Long-Term Issue Default Rating at ‘AA’; Outlook Positive

Fitch Affirms Rhode Island's Long-Term Issue Default Rating at 'AA'; Outlook Positive

Published on Monday, September 30, 2024

Providence, RI - Today, Rhode Island General Treasurer James A. Diossa announced that Fitch Ratings has affirmed the state's 'AA' (Positive) Long-Term Issue Default Rating (IDR) and issued a 'stable' rating outlook.

"Fitch's ratings reaffirm our state's proactive fiscal management and ensure lower cost borrowing for critical investments across Rhode Island," said General Treasurer Diossa."This is great news for all Rhode Islanders."

In addition, Fitch has affirmed the following state of Rhode Island ratings:

RI general obligation (GO) bonds at 'AA';

RI certificates of participation at 'AA-';

RI Convention Center Authority revenue bonds at 'AA-';

RI Commerce Corporation (historic structures tax credit financing program) revenue bonds at 'AA-'.

Fitch's report highlights the state's cautious and prudent fiscal management and a moderate long-term liability position. The rating agency also highlights Rhode Island's generally declining long-term lliability burden as a share of personal income, supported by improvements in debt management and growing financial relief from pension changes enacted more than a decade ago. Pension changes adopted in the 2024 legislative session will increase pension liabilities in the near term, but Fitch expects the long-term liability burden to subsequently resume its general downward trend, absent any additional legislative actions.

Fitch Ratings, Inc. is a leading American credit rating agency.

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