PROVIDENCE, R.I. -- Moody's Investors Service, the national credit rating agency, issued a favorable opinion Monday on the green light Superior Court gave Providence to proceed with its pension deal with retirees and current firefighters and police officers.
Superior Court Judge Sarah Taft-Carter's ruling last week "is credit positive for Providence because it signals that the court is likely to approve the pending agreement," Moody's March 18 newsletter stated.
The changes, expected to be fully approved in mid-April, are projected to save $18.5 million this fiscal year and reduce the city's unfunded liability by $170 million. They include a 10-year suspension of the cost-of-living increases to pensions and elimination of the 5- and 6-percent compounding cost-of-living raises that some retirees have received.
While the opinion was positive, the agency did not upgrade Providence's credit rating.