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Central Falls gets another bond upgrade

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By W. Zachary Malinowski

CENTRAL FALLS, R.I. -- There's more upbeat news for the state's poorest city, which just emerged from bankruptcy.

Standard & Poor's Ratings Service has boosted the 1.3-square-mile city's general obligation bond debt from C to BB. Analysts at the service gave high marks to the six-year plan of debt adjustment that requires city officials to adhere to strict budgets through 2017.

Those annual budgets had been set by the state-appointed receiver and approved by a judge in U.S. Bankruptcy Court.

The upgrade is the second in recent weeks. Last month, Moody's Investment Services issued a report that gave the city of 19,600 residents a similar upgrade and concluded that Central Falls had a "positive outlook.''

Central Falls is the first city in state history to file for Chapter 9 bankruptcy.


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