July 9 Standard & Poor's ratings service cut its
rating on Puerto Rico Electric Power Authority's (PREPA) power
revenue bonds to 'B-' from 'BB', citing the corporation's
inability to negotiate the renewal of its liquidity facility.
"We believe this increases the risk that the authority will
attempt to restructure long-term debt, as a law passed in June
allows," S&P said on Wednesday. (bit.ly/1mgxqqy)
The ratings agency said PREPA's rating remained on
CreditWatch with negative implications.
S&P said the CreditWatch placement was pending the outcome
of PREPA's negotiations with banks regarding the liquidity
facility it used to buy oil.
The CreditWatch is expected to be resolved within the next
three months, S&P said.
(Reporting by Abinaya Vijayaraghavan in Bangalore; Editing by