Rhode Island

Paying the moral obligation debt the state guaranteed for the failed 38 Studios will strengthen Rhode Island's image in the capital markets, Gov. Lincoln Chafee said in an interview.

Rhode Island's Senate sent an $8.7 billion budget to Gov. Lincoln Chafee, who said he would sign the plan, which includes a payment on bonds the state agreed to back for the failed 38 Studios firm.

Bleary-eyed Rhode Island House members shortly after midnight approved a revised $8.7 billion budget bill that included a $12.5 million payment toward 38 Studios moral obligation debt.

Debate over the 38 Studios bond fiasco reheated late into the night as a Rhode Island lawmaker offered a bill to ban a $12.5 payment on moral obligation debt a state agency issued on behalf of the failed video game maker.

Catherine Taylor will resign as Rhode Island director of elderly affairs, effective June 20, to run for lieutenant governor.

Fitch removed the GO rating of West Warwick, R.I., from rating watch negative and assigned a stable outlook while affirming its just-above-junk BBB-minus.

It's yes to 38 Studios debt and no to Sakonnet River Bridge tolls as Rhode Island House Finance Committee approved a revised $8.7 billion budget.

S&P revised its outlook to positive from stable for its long-term and underlying A rating on Cranston, R.I., general obligation debt to positive from stable.

S&P revised its outlook on Rhode Island Turnpike and Bridge Authority revenue bonds to negative from stable while affirming its A-minus rating on the bonds.

Frank Caprio, if he regains the Rhode Island treasurer's office, wants to go after the bond rating agencies as controversy simmers over 38 Studios.

Rhode Island House Speaker Nicholas Mattiello and Majority Leader John DeSimone plan to meet with Moody's and S&P in New York to discuss the possible fallout of missing 38 Studios-related bond payments.

The lawyer for former Rhode Island House Speaker Gordon Fox said a grand jury investigation may include the financing of failed video-game company 38 Studios.

Debate among Rhode Island politicians percolates over payment of 38 Studios debt, and a consulting firm hired to explore the fallout of nonpayment in the bond market warned of negative snowballing should the state not pay.

Rhode Island's recent $78.7 million general obligation bond refinancing will save the state $6.7 million over the life of the issue, which matures in 2025, according to General Treasurer Gina Raimondo.

Standard & Poor's put Rhode Island's GO bonds on credit watch negative and threatened a possible multiple-notch downgrade should the state default on 38 Studios debt.

Bond rating agencies could lower Rhode Island to junk if it misses 38 Studios moral obligation payments, said a report commissioned by a state agency.

Rhode Island Secretary of State Ralph Mollis has begun to probe possible violations of lobbying rules involving Curt Schilling's 38 Studios video-game company.

Actor Alec Baldwin will visit Rhode Island on June 7 to help raise money for the Adams Memorial Library in formerly bankrupt Central Falls.

Rhode Island's failed attempt to settle a lawsuit challenging its pension overhaul law casts uncertainty over the state's finances, say Moody's and Janney.

Rhode Island Superior Court Judge Sarah Taft-Carter rejected a motion by state officials to dismiss a lawsuit that challenged the 2011 pension overhaul law.