July 10 (Reuters) - Fitch Ratings revised its outlook on Woonsocket, Rhode Island, to stable from negative on Wednesday, citing the distressed city’s progress in implementing a five-year deficit reduction plan under state oversight.
The credit ratings agency affirmed its B rating on Woonsocket’s $115 million of outstanding general obligation bonds. The revised outlook is based on the city winning concessions from five of seven labor unions in recent contract negotiations, as well the state legislature’s approval of a supplemental tax levy that will yield an estimated $2.5 million, Fitch said.
On Tuesday, Moody’s Investors Service confirmed its B3 rating on the city. Moody’s outlook on Woonsocket remains negative as high fixed costs and an imbalance in school operations have led to an accumulated deficit.