Standard & Poor's Rating Services has put Rhode Island's credit on watch with negative implications due to ongoing debate about paying back bondholders who invested in the failed video game company 38 Studios.
In an advisory released Monday, S&P said it was lowering the rating on bonds issued by the Economic Development Corporation for 38 Studios in 2010 from A to BBB.
So here’s another report that shows just how badly the General Assembly has fumbled the 38 Studios ball. Gov. Lincoln Chafee has released a financial consultant’s report that shows that it would cost less for the state to pay off the 38 Studios bonds than to default.
The finding, by the firm SJ Advisors, states that Rhode Island’s credit rating would take a significant hit if the state walked away from the $75 million in bond obligations to those who invested retired Red Sox pitcher Curt Schilling’s folly, 38 Studios.
A report commissioned by the Chafee administration has found that even under the best-case scenario, Rhode Island will be better off paying back bondholders who invested in the failed video-game company 38 Studios.
Pablo Rodriguez joins Political Roundtable this week to discuss the latest developments related to 38 Studios; competing legislative plans on funding infrastructure improvements; Governor Chafee's effectiveness as a lame duck; and the impact in Rhode Island of climate change.