Mattiello: 38 Studios Payment Took RI Off S&P CreditWatch List

Speaker Nicholas A. Mattiello said he is pleased Standard & Poor’s rating agency has affirmed Rhode Island’s credit rating and removed the state from its CreditWatch list following the General Assembly’s decision to pay the $12.3 million installment of the job creation guaranty bonds for 38 Studios.

S&P bumped Rhode Island off the list – which implies there is little to no potential for an immediate downgrade of the state’s bond ratings – on Wednesday, just a few short days after lawmakers approved the Fiscal Year 2015 budget. Gov. Lincoln D. Chafee signed the budget into law yesterday in a ceremony in the State Room. 

“This affirmation from S&P shows that our decision was sound and will ensure protection of the state’s investments and reputation,” said Speaker Mattiello. “When Majority Leader John DeSimone and I met with the ratings agency last month, there was a clear indication from Moody’s and from S&P that refusal to make the bond payment would result in a ratings downgrade.”

The speaker also pointed out that many of Rhode Island’s investments and economic initiatives would have been severely jeopardized if the state received a downgrade from any of the rating agencies.

“At a cursory glance, a bond rating may not seem all that important,” Speaker Mattiello added. “But it is crucial as we look to improve our financial outlook. We can’t reverse our course and renege on an obligation that could jeopardize economic growth for decades to come. This message from S&P is good news for us. The state’s positive bond rating will assist us as we implement a comprehensive economic strategy to move our state forward in a positive direction.”