Rhode Island governor Lincoln Chafee said Thursday that the state would not step in an assist Providence, Rhode Island, after a credit downgrade.
In a statement, Mr. Chafee’s office said his administration will continue monitor the city’s budget crisis but direct intervention is not necessary.
Earlier this week Moody’s Investor Service announced it had downgraded the city’s A1 bond rating to an A3. Investors use the ratings to gauge a government’s credit worthiness. The downgrade makes Providence eligible for government intervention as defined by state law.
The announcement comes as federal and state governments continue to assess whether to bailout a number of cities and states.
