Rhode Island Bond Ratings Strengthen, Infrastructure Projects Advance
Rhode Island’s financial standing received a boost in May 2025, as Fitch Ratings upgraded the state’s long-term issue default rating to ‘AA+’. The upgrade occurred amid Treasurer James Diossa’s Rhode Island Investor Conference, signaling increased confidence in the state’s fiscal management.
This positive development comes as Rhode Island continues to invest in its infrastructure through bond offerings. In November 2024, communities across the state approved approximately $800 million in local bonds for a variety of projects. These ranged from essential equipment purchases, like a $1 million fire pump for Block Island, to large-scale construction and upgrades.
Providence voters approved a significant $400 million bond to address deficiencies in the city’s school system. The funds will be allocated to new construction or renovations at seven facilities, including Hope High School, and comprehensive “restore to new” projects at nine others, such as Central High School. According to the Providence School Department, this investment supplements over $500 million already earmarked for modernizing public school facilities.
Newport also saw substantial bond approvals, totaling $98.5 million for municipal facilities upgrades. Key projects include $20 million for the Perrotti Park Bulkhead and renovation of the Harbor Master Building, $13 million for a North End Public Safety Facility, and $12 million for the removal of the Van Zandt Bridge and associated road improvements. Further investments were allocated for Easton’s Beach nourishment and Cliff Walk repairs, with $3 million from a statewide $53 million Green Economy Bond specifically designated for the Cliff Walk.
Chariho Regional, encompassing Charlestown, Hopkinton, and Richmond, secured $15 million in bonding for improvements to its main campus, including the high school.
Beyond local initiatives, a statewide $120 million Housing Acquisition, Development, and Infrastructure Bond Measure was approved by voters on November 5, 2024. The measure aims to increase the availability of housing throughout Rhode Island. The ballot question passed with approximately 65.81% of voters in favor.
Governor Dan McKee’s fiscal year 2025 budget proposal initially included a request for $345 million in new state bonding. While the details of that proposal weren’t fully outlined in available information, the passage of the housing bond and the strong support for local bonds suggest continued voter willingness to invest in state and municipal projects.
Rhode Island’s issuer overview, as of February 5, 2026, reflects strong ratings from major agencies. General Obligation bonds are rated Aa2 by Moody’s, AA by S&P, and AA+ by Fitch. Lease Participation Certificates carry ratings of Aa3 from Moody’s, AA- from S&P, and AA from Fitch. Commerce Corporation Historic Structures Tax Credits are rated AA- by S&P and AA by Fitch.
The State of Rhode Island is committed to transparency with investors and the public, maintaining its strong bond ratings to facilitate critical investments in public infrastructure. The FY 2026 Proposed Capital Budget was posted on April 7, 2025, and the FY2025 Budget was posted on March 1, 2024, providing further detail on the state’s financial planning.
In December 2022, General Treasurer Seth Magaziner released a final report on the work of his administration, offering a historical perspective on the state’s financial management leading up to the current period of positive ratings and investment.
