Moodys pleased with RI's 38 Studios debt payment

Moody's ends review of RI bonds after lawmakers vote to make 38 Studios debt payment

Associated Press

PROVIDENCE, R.I. (AP) -- An influential rating agency has ended its scrutiny of Rhode Island's debt following the General Assembly's vote to make a payment relating to the failed investment in 38 Studios.

Moody's Investors Service announced Monday that it had ended its review of $2.1 billion in state debt prompted by uncertainty over whether the state would make the payment.

Gov. Lincoln Chafee says the decision by lawmakers to set aside $2.5 million for a debt payment next year sends a signal to the investment community that Rhode Island honors its obligations.

Some lawmakers had called to default on the state's debt for a $75 million loan guarantee given to the now-bankrupt video game company started by the former Red Sox pitcher Curt Schilling. But those attempts failed during budget votes last week.