EAST PROVIDENCE — East Providence announced Tuesday afternoon, Aug. 18, Moody’s Investors Service has officially upgraded the city's bond rating to an "A" investment level.

As recently as 2013, the city was considered to be in junk bond status carrying a high default risk. Not only has the city’s bond rating increased, it has jumped an unprecedented two steps, which is well above the norm for Moody’s.

According to the Moody's report, “the city’s continued trend of financial improvement over the last three fiscal years has significantly increased its reserve and liquidity levels through adherence to its formal fiscal policies. Further, the rating reflects the reduction of the city’s unfunded liability in its self-administered pension plan as a result of improved funding practices.”

The news was met with a mixture of pride and some deserved boastfulness by East Providence officials.

“Through hard work and financial discipline from the elected officials, city management and city employees, the city has elevated itself from junk bond status to the elite tier of A-ranked municipalities. This is what the taxpayers of East Providence deserve," said Acting City Manager Paul Lemont.

This new bond rating for East Providence comes on the heels of a very positive 2014 financial audit, a 2015 zero tax increase for its residents, and the news that the City is operating with a significant surplus for the third straight year in a row. East Providence is also one of the few cities in the state to have fully funded its ARC for both pension and OPEB plans.

Council President and Mayor Thomas Rose said East Providence’s financial turnaround is attributed to a fiscally conservative budget.

“On behalf of the City Council, I would like to express my great pleasure at this recognition by Moody’s of the remarkable financial turnaround which the City has undergone. This is a testimony to the dedication of my fellow City Council members and the City employees to careful fiscal management that keeps the needs of the residents’ first and foremost," Mr. Rose added.