MOODY'S ASSIGNS A2 RATING AND STABLE OUTLOOK TO RHODE ISLAND ECONOMIC DEVELOPMENT CORPORATION JOB CREATION GUARANTY PROGRAM TAXABLE REVENUE BONDS (38 STUDIOS, LLC PROJECT), SERIES 2010

Posted on: September 27, 2010, 2:49 pm

NEW YORK, Sep 27, 2010 -- Moody's has assigned a rating of A2 with a stable outlook to $75 million of Rhode Island Economic Development Corporation (RIEDC) Job Creation Guaranty Program Taxable Revenue Bonds (38 Studios, LLC Project), Series 2010. The rating is based on the moral obligation pledge offered by the State of Rhode Island (general obligation bonds rated Aa2 with a stable outlook) to replenish a capital reserve fund in the event that it is used for debt service. The rating incorporates the timing, mechanics, and notification related to the moral obligation pledge as outlined in statute. In addition, legal provisions require the director of RIEDC to request a supplemental appropriation to meet debt service requirements that may come due before the capital reserve fund is replenished. RIEDC plans to sell the bonds in mid October. Proceeds will be used to finance the relocation, establishment, and operation of 38 Studios, LLC's corporate headquarters and a video gaming studio to Providence, Rhode Island. A portion of the proceeds will also be used to fully fund a capital reserve fund at maximum annual debt service...

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