WEST WARWICK, R.I. (AP) – A financial services firm has downgraded West Warwick’s financial outlook, due to lawsuits the town faces as a result of a deadly nightclub fire nearly two years ago.

Fitch Ratings this week lowered its outlook for the town from positive to stable, citing “concerns about the uncertainties over the town’s contingent liability associated with ongoing litigations regarding a major fire incident in 2003.”

Fitch noted that the town has $4 million in liability coverage for the fire, but the financial services firm said it is concerned about damages the town might be liable for beyond that amount.

The firm kept intact the BBB rating on West Warwick’s $25.4 million outstanding general obligation bonds.

Town Council President Jeanne-Marie DiMasi told The Associated Press the change in outlook isn’t a surprise, but it is disappointing.

“We were kind of expecting that something would affect our bond ratings. We have so many (legal) claims against us,” DiMasi said. She added she believes this is the first set of ratings issued for West Warwick since the fire.

The town has been named in a number of lawsuits filed by fire survivors, and families of the 100 people killed by the Feb. 20, 2003 blaze at The Station nightclub. In addition to those who died, more than 200 people were injured, some severely and permanently.

The fire began when pyrotechnics that were part of 1980s rock band Great White’s performance ignited highly flammable foam placed around the club’s stage as soundproofing. Plaintiffs name the town of West Warwick in the lawsuits, claiming the town’s fire inspectors should have noted the foam.

The town has hired the Providence law firm Tillinghast, Licht, Perkins, Smith and Cohen to help protect its assets in the face of the legal claims.

Fitch released its ratings Tuesday. Explaining its decision to leave the bond rating unchanged, the firm said the town has improved its financial situation since the early 1990s, when the bond rating plunged to junk-bond levels.

“West Warwick’s financial performance has improved from a legacy of unrealistic budget estimates and dependence on short-term borrowings,” Fitch said.

A higher bond rating means a better rate when the town goes to borrow funds.

DiMasi said the town realizes it cannot prevent the claims from affecting its finances, but is working to secure West Warwick’s financial situation.

“We’re going to continue to go ahead and help bring development into the town which will help increase our tax base,” she said.