Schools bring down Woonsocket bond rating

Moody’s investor service has downgraded the City of Woonsocket’s bond rating, citing continuing deficits in the school department and unfunded local pension liabilities.

This week the agency reduced Woonsocket’s general obligation bonds from BA1 to BA2 status. A BA rating means a municipality ranks below average on Moody’s scale of “credit worthiness.”

Moody’s also gives Woonsocket a negative outlook, saying problems in the school department and under-funded municipal pensions are likely to plague the city for some time. City and state leaders have warned of the potential for a downgrade in Woonsocket since an audit last month revealed an unexpected $2.7 million shortfall in school finances.