PROVIDENCE, R.I. (AP) — Standard & Poor's has taken no action on the 38 Studios bonds — for now — as the Rhode Island General Assembly continues to debate whether to honor the debt.
The Providence Journal reports that the rating agency cited the support of Gov. Lincoln Chafee and legislative leaders for paying the bonds in leaving the rating unchanged. Some lawmakers have called for a default. The House budget unveiled this week includes a $2.5 million initial payment.
Moody's on Monday downgraded the bonds, citing an "erosion of the legislature's willingness to honor the moral obligation."
Chafee has warned of dire consequences should the state default.
The Economic Development Corp.'s $75 million investment in Curt Schilling's now-bankrupt company was supported through a bond sale. The state is responsible for $112 million overall.
Informationfrom: The Providence Journal, http://www.providencejournal.com