Video
Warwick's Credit Rating Lowered by S&P Global
Published: December 3, 2025
S&P Global lowered Warwick's credit rating from AA to AA-. This video explains how recurring school operating deficits, declining financial reserves, and rising debt weakened the city's financial position—and what the warning means for Warwick taxpayers.
Why This Matters
S&P Global's downgrade is an important warning about Warwick's long-term financial sustainability. The rating agency identified recurring operating deficits in the Warwick School Department as the primary concern. Those deficits began after temporary federal COVID relief funds were used to support ongoing staffing costs without a permanent source of revenue.
School construction debt also affects the city's financial outlook, but it was not the central reason for the downgrade. The larger concern is that rising debt payments are colliding with continued school deficits and the use of city reserves to cover annual shortfalls without a clearly defined plan to restore those reserves.
Warwick taxpayers deserve an honest explanation of these risks and a credible plan to address them. City and school spending must be aligned with sustainable revenue before growing debt and recurring deficits lead to even greater pressure on property taxes.