Central Falls exits bankruptcy, bond rating hiked


Rhode Island’s revenue director says an upgrade in the bond rating of Central Falls bodes well not just for the city but for all municipalities in the state.

Moody’s Investor Services on Friday upgraded the city’s rating from Caa1 to B2 and revised its outlook to “positive” a day after Central Falls officially exited municipal bankruptcy.

Revenue Director Rosemary Booth Gallogly says she’s pleased Moody’s has recognized city and state efforts to stabilize Central Falls’ finances and put in place a budget framework going forward. Central Falls in August 2011 became the first municipality in Rhode Island to file for bankruptcy.

A federal judge in September signed off on the state-appointed receiver’s recovery plan for Central Falls, which balances its budgets for the next five years.

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