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. ()