July 1 Moody's Investors Service cut its rating on Puerto Rico to B2 from Ba2, affecting $14.4 billion of the island commonwealth's general obligation (GO) bonds, citing Puerto Rico's new law that allows public corporations to restructure debt.
Moody's also downgraded Puerto Rico Electric Power Authority (PREPA) to Caa2 from Ba3 and cut its rating on Puerto Rico Aqueduct and Sewer Authority (PRASA) to Caa1 from Ba3. (bit.ly/1m6cZvI)
The ratings agency downgraded the Puerto Rico Highway and Transportation Authority (PRHTA) to Caa1 (senior 1998 resolution and 1968 resolution) from Ba3.
Moody's warned that these corporations were under review for further possible rating downgrades.
It maintained its negative outlook on Puerto Rico's GO bonds and related debt. (Reporting by Devika Krishna Kumar in Bangalore; Editing by Kirti Pandey)