- Special Sections
- Time Out
WEST WARWICK â€” Days before the town financial meeting â€” being held tonight â€”Moodyâ€™s Investors Services reviewed West Warwickâ€™s rating and once again, downgraded it from BBB+ to BBB-.
This rating leaves the town one step above junk bond status.
The rating was based on $12 million in outstanding general obligation (GO) bonds that the town has accumulated.
These bonds, according to a report sent out by Moodyâ€™s, have been placed on a rating watch negative.
One of the key drivers in the two-notch downgrade is the growing budget problems the town has seen in the past year in regards to its unfunded pension plan and Other Post Employment Benefits (OPEB).
The Moodyâ€™s report states that â€śthe cityâ€™s budget pressures are compounded by consistent underfunding of retiree costs, statutory revenue limitations, a shortage of additional cost cutting solutions, financial exposure to school budget underperformance and a town charter requirement for budget approval by referendum.â€ť
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