S&P Global Ratings lowered its long-term rating on Woonsocket, R.I.'s water revenue bonds outstanding to 'BBB+' from 'A-' and removed the rating from CreditWatch, where it was placed with negative implications on Aug. 16, 2024. The outlook is negative. The downgrade reflects reactive rate setting resulting in financial erosion at the water fund before a recent large rate hike, compounded by poor transparency characterized by delayed audits and budgeting, which we view as governance weaknesses in risk management and transparency. The negative outlook reflects our concern that near-term financial performance could weaken further if recently approved rate increases are insufficient to cover rising operating costs and sufficiently fund capital reinvestment in the system. Net revenues of the city's water system
