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House Speaker to Meet with Bond Rating Agencies

House Speaker to Meet with Bond Rating Agencies

NewsRadio 920 WHJJ and the Associated Press

PROVIDENCE, R.I. (AP) — Rhode Island's House speaker will meet with two Wall Street ratings agencies as he considers whether to support repaying the bonds that financed the failed 38 Studios deal.

Nicholas Mattiello will travel with Majority Leader John DeSimone to New York City Tuesday afternoon. A spokesman says meetings are scheduled Wednesday with Moody's and Standard & Poor's.

Mattiello's office calls it "part of their fact-finding mission to be fully informed" before making a decision.

Some lawmakers say taxpayers shouldn't have to foot the bill for what's owed under the deal that gave 38 Studios a $75-million state-backed loan. The company went bankrupt.

A state-commissioned analysis predicted the state's bond rating would sink to junk status if it defaulted.

The Chafee administration says the state should pay, even if it's distasteful.

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