Pawtucket Soccer Stadium: S&P Says RI’s Failure to Make Payments Could Impact Its Credit Rating

Pawtucket Soccer Stadium: S&P Says RI’s Failure to Make Payments Could Impact Its Credit Rating

There is yet another twist and turn in the ever-changing financial scheme for the minor league soccer stadium in Pawtucket.

The latest information secured by GoLocal reveals that if the stadium's owners falter, Rhode Island would be faced with either continuing to finance the project or taking a hit to the state's “creditworthiness.”

As GoLocal has exclusively reported over the past week, there is a new bond refinancing package now being offered that increases the total amount of the bonds, creates a significant windfall for the lead investor, and increases the state’s responsibility.

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The new scheme may lower the state’s payments due to a lower interest rate in exchange for a greater financial responsibility for the project - but the bonds are yet to be priced.

The soccer stadium has been a pet project of Governor Dan McKee.

 

Warning of impact on RI's "Creditworthiness"

GoLocal reached out to the S&P rating agency on the new bond deal to clarify the state of Rhode Island’s financial obligation for the stadium deal.

Scott Shad, Associate Director, S&P Global US Public Finance Ratings, in a statement to GoLocal on Thursday, outlines that the new structure does not constitute a “moral obligation” but does warn that if the state does not make its bond payments over the next 30 years, it may impact the state's creditworthiness.

“To clarify, there is a requirement for the state to annually appropriate these funds for timely debt service payments, and this is not a moral obligation. Rhode Island's failure to make timely payment of debt service on its appropriation backed debt could negatively impact our view of the state's general creditworthiness, including other appropriation backed debt linked to the state’s general creditworthiness,” said Shad.

A downgrade of the state's credit rating would adversely impact Rhode Island's borrowing costs by tens of millions of dollars annually.

Both the minor league soccer team and the stadium are privately owned by California-based Brett Johnson.

If Johnson’s ownership group folded the team or the team was unable to generate the necessary revenue to make payments for the stadium, Rhode Island could be faced with an even greater financial obligation.

 

S&P Calls Rhode Island an “Obligate”

The report issued by S&P this month rates the bonds AA-. The initial bonds were not rated.

“We rate the series 2025 state appropriation revenue refunding bonds at 'AA-', one notch lower than Rhode Island's general creditworthiness, as reflected in our ‘AA’ issuer credit rating (ICR), to account for the appropriation risk associated with the payments due under the agreement,” S&P writes in the bond rating.

“We view Rhode Island's involvement as obligor as moderate given the state’s commitment to annually appropriate funds by the Rhode Island general assembly from any legally available funds of the state, although there is no clear linkage between the Tidewater Landing Phase 1A project and the basic function of the state,” states the S&P.

“Last, we view political and administrative support as strong given the state's demonstrated commitment to repaying similar appropriation-backed obligations,” writes S&P.

The initial bond package issued in February of 2024 was for $54,285,000

The new bond refinancing package is for $60,220,000.

Under the existing bonds, Rhode Island is obligated to pay more than $140 million in bond payments.

This story was first published 12/11/25 5:56 PM