Moody's Investors Service late Monday warned of a multinotch downgrade to Rhode Island's Aa2 general obligation rating if state lawmakers refuse to appropriate payment toward $75 million in moral obligation debt related to failed video-game company 38 Studios.

Moody's lowered the 38 Studios bonds to Baa1 from A2 and also placed Rhode Island's Aa3 related appropriation bond ratings and the Job Creation Guarantee Program, the economic development vehicle behind the 38 Studios loan, on review for further downgrade to match the downgrade review on Rhode Island GOs.

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