S&P revises outlook on $1.1 bln Puerto Rico agency bonds to negative
Sept 6 |
Sept 6 (Reuters) - Standard & Poor's Ratings Service on Thursday revised from stable to negative its credit outlook for about $1.1 billion of bonds issued by the Puerto Rico Municipal Finance Agency.
S&P, which reaffirmed its BBB-minus rating on the debt, said the local-government and commonwealth revenue pledged to pay off the bonds may prove vulnerable to shifts in the Caribbean island's economy, according to a news release.
"While revenue from local property tax collections has produced adequate coverage of annual debt service, the negative outlook reflects our view that the maintenance of coverage levels consistent with historical levels requires the inclusion of appropriations from the commonwealth," S&P said.
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