S&P raises Central Falls, Rhode Island GO rating to BB

Fri Nov 16, 2012 9:12am EST

Nov 16 (Reuters) - Standard & Poor's Ratings Service late on
Thursday said it raised Central Falls, Rhode Island's general
obligation debt rating to BB from C.
    "The upgrade reflects active state oversight of the city's
financial operations," said S&P credit analyst Victor Medeiros."
    The upgrade also reflects, the city's six-year operating
plan that maintains structural balance after it emerged from
Chapter 9 bankruptcy in October without defaulting on its
long-term GO debt.
    The outlook is stable reflecting that the city will probably
maintain structural balance despite a weak economic profile, the
rating agency said in a statement.
    The rating agency said it does not expect to change the
rating in the next two years given the city's current financial
position, along with weak credit fundamentals.
    In October, Moody's Investors Service also upgraded its
credit rating on Central Falls to B2 from Caa1.
    Central Falls, is the smallest city by size in Rhode Island,
with a population of 18,928.
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