Rhode Island continues to move in the right direction, a fact reflected in recent news about our state’s bond ratings. When faced with market uncertainty, government bonds offer investors the opportunity to diversify their investments and reduce risk. Historically, Rhode Island bonds have been a popular option, delivering competitive returns and minimal risk at a sustainable cost to taxpayers.
Recently, Fitch Ratings, one of three top global credit rating agencies, upgraded Rhode Island’s Long-Term Issuer Default Rating (IDR) from ‘AA’ to ‘AA+’, reflecting our commitment to strong fiscal management and economic growth. Fitch has also assigned a “AA+” rating to the upcoming general obligation (GO) bond issuance. The other two global agencies, Standard & Poor’s and Moody’s, also reaffirmed their positive ratings for our state, respectively. This is great news for our state and a vote of confidence in its financial stability and outlook. It also means that when we offer bonds to investors, they come with greater confidence, lower risk, and potentially better value for all involved.
Earlier this month, I hosted our second Rhode Island Investor Conference bringing more than 100 investors, analysts, and public officials together in Providence to highlight the unique value of investing in our state. We talked openly about the progress we’ve made, the projects on the horizon, and the upcoming GO bond sale totaling more than $270 million, taking place next week.
Rhode Island is poised to offer anyone who invests competitive returns while ensuring that we have the resources necessary to make major investments in education, infrastructure, and environmental projects. These funds will support major public investments in infrastructure, education, clean energy, and housing.
While these bonds have always been popular with institutional investors, they’re also open to individuals and I believe more Rhode Islanders should take advantage of them. When residents invest, it sends the message that our state belongs to all of us.
When you buy these bonds, you’re not just investing your own financial portfolio, you’re investing in the roads you drive on, the schools your children attend, and the climate-resilient projects that will protect our shoreline. You’re doing so through a low-risk vehicle that has a track record of delivering steady returns.
The State of Rhode Island’s next GO bond offering begins June 9. You can learn more about these bonds, the terms, and more at www.rhodeislandbonds.com. Consider investing in your state and see your investment at work in the community you call home.
James Diossa is the Rhode Island General Treasurer.
