S&P says Rhode Island Econ Dev Corp bonds unaffected by 38 Studios

June 20 Thu Jun 20, 2013 11:29am EDT

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June 20 (Reuters) - Standard & Poor's Ratings Services said on Thursday the Rhode Island Economic Development Corp's revenue bonds, issued for the now-bankrupt 38 Studios LLC, are unaffected by the state's open discussion of defaulting on the bonds.

In March, representatives in Rhode Island's House introduced legislation that would cause the state to default on the bonds, which are backed by the state's moral obligation. During recent budget negotiations the statehouse openly debated skipping an interest payment on the debt due next year.

The bonds' A rating and stable outlook are unaffected by the recent statements and legislation, as are Rhode Island's general obligation and appropriation debt AA rating and stable outlook, the rating agency said in a statement.

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