Springfield loses it junk-bond rating

In a sign that Massachusetts' third-largest city is recovering from financial problems that have dogged it for years, Springfield's bond rating has been raised from junk status.

City officials today said that Standard & Poor's lifted the rating to BBB; Moody's Investors Service's rating is Baa3, with a stable outlook.

Mayor Charles Ryan credited the state-appointed board that controls the city's spending with improving its finances. When the board was formed in 2004, the city had a $41 million deficit.

Phil Puccia, the board's executive director, said Springfield's budget is now balanced, thanks to contract settlements and changes in how the city manages its health plan.

"We're now in the black, and we don't have to borrow money every month to make payroll," Puccia said.

Springfield's bonds were downgraded to junk status in 2004, just before the control board was installed.
(AP)