Gov. Lincoln Chafee says Moody’s is sending Rhode Island an important message by downgrading the state’s bonds for its failed deal with 38 Studios.
The credit rating agency downgraded the bonds by two notches and put the state on notice that the rest of its obligations are under review for a possible downgrade.
Lawmakers are debating whether to default on the moral obligation bonds used to float the failed video game company. Chafee said as Moody’s has shown, that’s a bad idea.