March 1 Moody's Investor's Service assigned a rating of (P) Ba2, with a negative outlook, to Puerto Rico's planned issuance of up to $3.5 billion 2014 A General Obligation Bonds, citing the current administration's efforts to control debt and spending.
Moody's said the general obligation bonds, scheduled to price in the next few weeks, would provide enough liquidity to repay internal loans from the Government Development Bank for Puerto Rico (GDB).
Puerto Rico has some $70 billion of debt outstanding and has long struggled with a shrinking economy and population.
The negative outlook reflects liquidity pressure and uncertainty in Puerto Rico's economic future, Moody's said. ()