SAN JUAN Dec 13 Moody's Investors Service on
Thursday cut Puerto Rico's credit rating by two notches to Baa3
from Baa1, with a negative outlook, the head of the Government
Development Bank said.
No one was immediately available at Moody's to comment on
the statement by GDB President Juan Carlos Batlle.
According to the GDB, Moody's said Puerto Rico has
stabilized recently for the first time since 2006, but continues
to be weak "and unable to absorb much more pressure." It also
said it did not have a clear idea as to when and how the
government would resolve problems of its workers retirement
systems, which have a combined $36.3 billion unfunded liability.
The bank acts as the government's financial adviser and
undertakes bond and other transactions on behalf of Puerto
Rico's government agencies, public corporations and town
governments, providing financial oversight for them.