March 4 (Reuters) - Fitch assigned a ‘BB’ rating to Puerto Rico’s planned issuance of up to $3.5 billion general obligation (GO) bonds, citing weakness in the country’s economy, high debt and unfunded pensions.
Puerto Rico’s governor signed a bill on Tuesday authorizing the bond sale. Sources familiar with the matter told Reuters the issuance is likely to be priced next week.
The agency assigned a negative outlook on the bonds. It also affirmed its ‘BB’ rating on Puerto Rico’s $10 billion of outstanding GO bonds.
Puerto Rico has about $70 billion of outstanding debt and has long struggled with a shrinking economy and population.